RE dominated by bulls lifting the market higher throughout the day
Everest Re Group Ltd. (RE) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, RE ended the month 3.93% higher at 206.20 after gaining $3.67 (1.81%) today on low volume, slightly 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 206.07, the share confirmed its breakout through the previous session high after trading up to $1.02 above it intraday.
Daily Candlestick Chart (RE as at Jun 30, 2020):
Tuesday's trading range has been $4.94 (2.44%), that's far below the last trading month's daily average range of $7.20. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for RE.
Despite a weak opening the market managed to close above the prior day's open and close, forming a bullish Engulfing Candle. Additionally, three candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns and one bearish pattern, the Bearish Hikkake Pattern.
The stock ran into sellers again today around 207.09 for the third trading day in a row after having found sellers at 206.07 in the previous session and at 206.15 two days ago. The last time this happened on March 25th, RE actually gained 11.73% on the following trading day.
Everest Re shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling could speed up should prices move below the nearby swing low at 198.68 where further sell stops might get triggered.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior two Highs" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Everest Re. Out of 152 times, RE closed higher 53.29% 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 60.53% with an average market move of 0.54%.