PBI fails to close above 20-day moving average
Pitney Bowes Inc. (PBI) Technical Analysis Report for Jul 13, 2020 | by Techniquant Editorial Team
PBI finished Monday at 2.49 losing $0.04 (-1.58%) on low volume, underperforming the S&P 500 (-0.94%). Trading $0.05 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. 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 Jul 13, 2020):
Monday's trading range has been $0.11 (4.35%), that's below the last trading month's daily average range of $0.14. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for PBI.
After moving higher in the previous session, the stock closed lower but above the prior day's open today, forming a bearish Harami Candle.
After spiking up to 2.58 during the day, Pitney Bowes found resistance at the 20-day moving average at 2.57. The last time this happened on May 26th, PBI actually gained 6.69% on the following trading day.
Although the share is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might speed up should prices move above the close-by swing high at 2.67 where further buy stops could get triggered. As prices are trading close to July's high at 2.67, upside momentum might accelerate should PBI mark new highs for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 20" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Pitney Bowes. Out of 58 times, PBI closed higher 56.90% of the time on the next trading day after the market condition occurred.