PRI runs into sellers around 117.03 for the third day in a row
Primerica Inc. (PRI) Technical Analysis Report for Jul 02, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, PRI finished Thursday at 113.11 edging lower $0.05 (-0.04%), slightly underperforming the S&P 500 (0.45%) ahead of tomorrow's Independence Day OBS market holiday. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (PRI as at Jul 02, 2020):
Thursday's trading range has been $4.19 (3.62%), that's slightly below the last trading month's daily average range of $4.20. 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.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 112.24 (S1). The share ran into sellers again today around 117.03 for the third trading day in a row after having found sellers at 117.66 in the prior session and at 117.06 two days ago. The last time this happened on Monday, PRI actually gained 2.35% on the following trading day.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might speed up should prices move above the nearby swing high at 117.66 where further buy stops could get triggered. Selling might accelerate should prices move below the close-by swing low at 111.22 where further sell stops could get activated. Further selling might move prices lower should the market test June's nearby low at 110.00.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Primerica. Out of 772 times, PRI closed higher 53.76% 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 61.79% with an average market move of 1.07%.