PBI breaks back below 50-day moving average
Pitney Bowes Inc. (PBI) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
PBI finished the week 10.9% higher at 2.34 after losing $0.12 (-4.88%) today on low volume, strongly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (PBI as at May 22, 2020):
Friday's trading range has been $0.19 (7.85%), that's below the last trading month's daily average range of $0.27. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for PBI.
Prices are trading close to the key technical support level at 2.25 (S1). Pitney Bowes closed back below the 50-day moving average at 2.37. When this moving average was crossed below the last time on May 12th, PBI lost -3.08% on the following trading day. The stock ran into sellers again today around 2.46 for the third trading day in a row after having found sellers at 2.47 in the prior session and at 2.47 two days ago.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 50" stand out. Its common bearish interpretation has been confirmed for Pitney Bowes. Out of 77 times, PBI closed lower 61.04% 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 58.44% with an average market move of -1.70%.