PBI closes above its opening price after recovering from early selling pressure
Pitney Bowes Inc. (PBI) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
PBI ended Wednesday at 5.61 gaining $0.09 (1.63%), strongly outperforming the S&P 500 (-0.46%). Trading up to $0.19 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 Sep 16, 2020):
Wednesday's trading range has been $0.34 (6.07%), that's slightly above the last trading month's daily average range of $0.32. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for PBI.
Four candlestick patterns are matching today's price action, the Northern Doji which is known as bearish pattern and three neutral patterns, the Doji, the Long-Legged Doji and the Rickshaw-Man. The last time a Northern Doji showed up on April 24th, PBI actually gained 12.45% on the following trading day.
The stock managed to close above the 20-day moving average at 5.56 for the first time since August 27th. Unable to break through the key technical resistance level at 5.63 (R1), the market closed below it after spiking up to 5.75 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. After having been unable to move lower than 5.41 in the prior session, the share found buyers again around the same price level today at 5.41.
Though PBI is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Pitney Bowes. Out of 155 times, PBI closed lower 53.55% 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 60.00% with an average market move of -1.28%.