PRA closes below its opening price unable to hold early session gains
ProAssurance Corporation (PRA) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, PRA finished Thursday at 25.03 edging lower $0.20 (-0.79%) on low volume, significantly underperforming the S&P 500 (6.24%). Trading $0.47 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 prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (PRA as at Mar 26, 2020):
Thursday's trading range has been $1.15 (4.58%), that's far below the last trading month's daily average range of $2.50. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for PRA.
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. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Prices are trading close to the key technical support level at 23.80 (S1). After having been unable to move lower than 24.08 in the previous session, the stock found buyers again around the same price level today at 24.42. The last time this happened on Monday, PRA gained 4.11% on the following trading day.
While ProAssurance is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Selling might speed up should prices move below the nearby swing low at 24.08 where further sell stops could get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for ProAssurance. Out of 317 times, PRA closed higher 50.47% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 54.57% with an average market move of 0.17%.