PRI unable to break through key resistance level
Primerica Inc. (PRI) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
PRI ended Wednesday at 120.14 losing $1.90 (-1.56%), significantly underperforming the S&P 500 (-0.46%). Trading $1.40 higher after the open, Primerica was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Tuesday's low at 121.55, the share confirmed its breakout through the prior session low after trading up to $1.55 below it intraday.
Daily Candlestick Chart (PRI as at Sep 16, 2020):
Wednesday's trading range has been $3.61 (2.95%), that's far above the last trading month's daily average range of $2.68. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly 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 119.18 (S1). Unable to break through the key technical resistance level at 122.91 (R1), the market closed below it after spiking up to 123.61 earlier during the day. The failure to close above the resistance could increase that levels significance going forward. When prices bounced off a significant resistance level the last time on September 11th, PRI actually gained 1.02% on the following trading day.
While the stock is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Selling could speed up should prices move below the close-by swing low at 118.87 where further sell stops might get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Primerica. Out of 638 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 57.68% with an average market move of 1.00%.