PBI closes lower for the 2nd day in a row
Pitney Bowes Inc. (PBI) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, PBI finished the week -3.27% lower at 3.85 after losing $0.09 (-2.28%) today, strongly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. 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 (PBI as at Feb 14, 2020):
Friday's trading range has been $0.17 (4.31%), that's below the last trading month's daily average range of $0.22. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for PBI.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on January 27th, PBI actually gained 3.05% on the following trading day.
After having been unable to move lower than 3.81 in the previous session, the market found buyers again around the same price level today at 3.79.
While the stock is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
With prices trading close to this year's low at 3.52, downside momentum could speed up should the share break out to new lows for the year. As prices are trading close to February's low at 3.62, downside momentum might accelerate should Pitney Bowes mark new lows for the month.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Pitney Bowes. Out of 322 times, PBI closed higher 52.80% 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 two trading days, showing a win rate of 49.69% with an average market move of 0.10%.