PBI finds buyers at key support level
Pitney Bowes Inc. (PBI) Technical Analysis Report for Dec 07, 2018 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, PBI ended the week -16.0% lower at 7.09 after losing $0.29 (-3.93%) today on high volume, notably underperforming the S&P 500 (-2.33%) following today's NFP report. Today's close at 7.09 marks the lowest recorded closing price since October 31st. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 7.30, the share confirmed its breakout through the previous session low after trading up to $0.26 below it intraday.
Daily Candlestick Chart (PBI as at Dec 07, 2018):
Friday's trading range has been $0.46 (6.21%), that's above the last trading month's daily average range of $0.30. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for PBI.
One bearish candlestick pattern matches today's price action, the Black Candle.
After trading down to 7.04 earlier during the day, the stock bounced off the key technical support level at 7.04 (S1). The failure to close below the support could increase that levels significance as support going forward. Prices broke below the key technical support level at 7.31 (now R1), which is likely to act as resistance going forward. The last time this happened on Tuesday, PBI lost -3.40% on the following trading day.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day although might signal a potential change in momentum that could lead to a correction back up towards the center of the Bollinger Bands at 8.00.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Further selling might move prices lower should the market test November's close-by low at 6.89.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close below the lower Bollinger Band" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Pitney Bowes. Out of 169 times, PBI closed higher 52.66% of the time on the next trading day after the market condition occurred.