PBI closes above its opening price after recovering from early selling pressure
Pitney Bowes Inc. (PBI) Technical Analysis Report for Mar 27, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, PBI ended the week 6.42% higher at 2.32 after edging higher $0.04 (1.75%) today, significantly outperforming the S&P 500 (-3.37%). Trading up to $0.17 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on March 17th, PBI actually lost -17.14% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (PBI as at Mar 27, 2020):
Friday's trading range has been $0.32 (14.55%), that's slightly below the last trading month's daily average range of $0.39. 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 PBI.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
Prices are trading close to the key technical resistance level at 2.66 (R1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 2.66 where further buy stops might get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bullish Intraday Reversal" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Pitney Bowes. Out of 397 times, PBI closed lower 51.13% 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 54.41% with an average market move of -0.71%.