BRO closes within previous day's range after lackluster session
Brown & Brown Inc. (BRO) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
BRO finished Thursday at 35.90 gaining $1.77 (5.19%) on low volume, strongly underperforming the S&P 500 (6.24%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (BRO as at Mar 26, 2020):
Thursday's trading range has been $2.02 (5.83%), that's below the last trading month's daily average range of $2.53. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for BRO. Prices continued to consolidate within a tight trading range between 32.93 and 36.19 where it has been caught now for the last three trading days.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 35.00 (now S1), which is likely to act as support going forward. The last time this happened on March 17th, BRO actually lost -7.84% on the following trading day. Prices are trading close to the key technical resistance level at 37.28 (R1). The stock ran into sellers again today around 35.98 for the third trading day in a row after having found sellers at 36.19 in the previous session and at 35.69 two days ago.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 36.19 where further buy stops could get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior low" stand out. Its common bullish interpretation has been confirmed for Brown & Brown. Out of 552 times, BRO closed higher 53.80% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 60.69% with an average market move of 0.76%.