PBI pops to highest close since May 1st
Pitney Bowes Inc. (PBI) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, PBI finished the month 28.46% higher at 3.34 after edging higher $0.02 (0.6%) today, slightly underperforming the S&P 500 (0.77%). Today's close at 3.34 marks the highest recorded closing price since May 1st. Trading up to $0.09 lower after the open, Pitney Bowes managed to reverse during the session as bulls took control ending the day above its opening price. 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 Jul 31, 2020):
Friday's trading range has been $0.26 (8.0%), that's far above the last trading month's daily average range of $0.17. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently 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.
Buyers managed to take out the key technical resistance level at 3.33 (now S1), which is likely to act as support going forward. The last time this happened on Wednesday, PBI gained 12.54% on the following trading day.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day although could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 2.76.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the four 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 393 times, PBI closed lower 52.16% 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 54.20% with an average market move of -0.74%.