PBI unable to break through key resistance level
Pitney Bowes Inc. (PBI) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, PBI ended the month 9.7% higher at 2.60 after edging higher $0.02 (0.78%) today on low volume, underperforming the S&P 500 (1.54%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (PBI as at Jun 30, 2020):
Tuesday's trading range has been $0.11 (4.31%), that's far below the last trading month's daily average range of $0.18. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for PBI. Prices continued to consolidate within a tight trading range between 2.41 and 2.64 where it has been caught now for the whole last trading week.
Unable to break through the key technical resistance level at 2.62 (R1), Pitney Bowes closed below it after spiking up to 2.64 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. When prices bounced off a significant resistance level the last time on June 25th, PBI lost -2.76% on the following trading day.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling could speed up should prices move below the nearby swing low at 2.41 where further sell stops might get triggered. As prices are trading close to June's low at 2.37, downside momentum could accelerate should the stock mark new lows for the month.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R1" stand out. Its common bearish interpretation has been confirmed for Pitney Bowes. Out of 372 times, PBI closed lower 51.88% 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 51.88% with an average market move of -0.49%.