NAVI closes above its opening price after recovering from early selling pressure
Navient Corporation (NAVI) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, NAVI finished the month 13.23% higher at 7.96 after edging lower $0.01 (-0.13%) today, underperforming the S&P 500 (0.77%). Trading up to $0.29 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (NAVI as at Jul 31, 2020):
Friday's trading range has been $0.33 (4.15%), that's slightly below the last trading month's daily average range of $0.38. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for NAVI.
Two candlestick patterns are matching today's price action, the Dragonfly Doji which is known as bullish pattern and one neutral pattern, the Doji. The last time a Doji showed up on April 23rd, NAVI gained 4.61% on the following trading day.
After trading down to 7.66 earlier during the day, the stock bounced off the key technical support level at 7.89 (S1). The failure to close below the support could increase that levels importance as support going forward.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Dragonfly Doji" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Navient. Out of 6 times, NAVI closed lower 66.67% 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 66.67% with an average market move of -2.40%.