PRI still stuck within tight trading range
Primerica Inc. (PRI) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, PRI finished the month 2.6% higher at 116.60 after gaining $2.68 (2.35%) today, outperforming the S&P 500 (1.54%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 115.62, the share confirmed its breakout through the previous session high after trading up to $1.44 above it intraday.
Daily Candlestick Chart (PRI as at Jun 30, 2020):
Tuesday's trading range has been $3.15 (2.77%), that's below the last trading month's daily average range of $4.05. 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 PRI. Prices continued to consolidate within a tight trading range between 111.22 and 117.06 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern. The last time a White Candle showed up on June 25th, PRI actually lost -3.82% on the following trading day.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
As prices are trading close to June's low at 110.00, downside momentum might speed up should Primerica mark new lows for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "White Candle" stand out. Its common bullish interpretation has been confirmed for Primerica. Out of 632 times, PRI closed higher 52.22% 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 58.70% with an average market move of 0.87%.