NAVI unable to break through key resistance level
Navient Corporation (NAVI) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
NAVI finished the month -5.51% lower at 7.03 after losing $0.21 (-2.9%) today, significantly underperforming the S&P 500 (1.54%). Trading $0.18 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. 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 (NAVI as at Jun 30, 2020):
Tuesday's trading range has been $0.32 (4.47%), that's below the last trading month's daily average range of $0.48. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for NAVI.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
Unable to break through the key technical resistance level at 7.25 (R1), the market closed below it after spiking up to 7.34 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. Navient ran into sellers again today around 7.34 for the third trading day in a row after having found sellers at 7.37 in the prior session and at 7.36 two days ago. The last time this happened on May 22nd, NAVI actually gained 4.88% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 7.37 where further buy stops might get activated. Selling could speed up should prices move below the nearby swing low at 6.78 where further sell stops might get triggered. Further selling could move prices lower should the market test May's close-by low at 6.14.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous two Highs" stand out. Its common bearish interpretation has been confirmed for Navient. Out of 102 times, NAVI closed lower 59.80% 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 64.71% with an average market move of -1.32%.