Patterson Companies Inc Tanks After Earnings, Here’s The Trade

President & CEO Chief Market Strategist at IntheMoneyStocks.com • Jun 23, 2021 at 12:54 PM EDT

The next major support level for Patterson Companies Inc0 stock will be around the $25.00 area. This is a major retrace level from the March 2020 lows to the recent peak.

This morning, leading dental and animal health distribution company, Patterson Companies Inc (PDCO) is tanking after reporting earnings. The stock is trading lower by 12.02% to $30.90 a share on heavy volume. The stock has now fallen below its important 50-day moving average and is sitting just above its 200-day moving average. This puts the stock in a weak technical position on the charts and likely signals further downside in the near term.

The next major support level for Patterson Companies Inc (PDCO) stock will be around the $25.00 area. This is a major retrace level from the March 2020 lows to the recent peak. Often, major retrace levels will serve as solid support when tested. This is also where the 200-week moving average is sitting adding more strength to the support level. I will be keeping this stock on my radar for a buying opportunity around this key level.

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