NAVI closes within previous day's range after lackluster session
Navient Corporation (NAVI) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
NAVI finished the week 5.7% higher at 10.39 after losing $0.06 (-0.57%) today, underperforming the S&P 500 (-0.01%). Trading up to $0.11 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (NAVI as at Jan 11, 2019):
Friday's trading range has been $0.25 (2.41%), that's far below the last trading month's daily average range of $0.39. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for NAVI. Prices continued to consolidate within a tight trading range between 10.15 and 10.50 where it has been caught now for the last three trading days.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Prices are trading close to the key technical support level at 10.38 (S1). The share ran into sellers again today around 10.50 for the third trading day in a row after having found sellers at 10.48 in the previous session and at 10.47 two days ago. The last time this happened on November 15, 2018, NAVI lost -4.63% on the following trading day.
While the market is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior two Highs" stand out. Its common bearish interpretation has been confirmed for Navient. Out of 82 times, NAVI closed lower 59.76% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 69.51% with an average market move of -2.14%.