RE closes above its opening price after recovering from early selling pressure
Everest Re Group Ltd. (RE) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
RE ended the month 6.11% higher at 218.79 after gaining $2.70 (1.25%) today, slightly outperforming the S&P 500 (0.77%). Trading up to $1.73 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 218.69, the market confirmed its breakout through the prior session high after trading up to $0.29 above it intraday.
Daily Candlestick Chart (RE as at Jul 31, 2020):
Friday's trading range has been $4.28 (1.98%), that's below the last trading month's daily average range of $5.54. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for RE. Prices continued to consolidate within a tight trading range between 214.12 and 220.51 where it has been caught now for the last three trading days.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Wednesday, RE actually lost -1.75% on the following trading day.
Prices are trading close to the key technical resistance level at 219.80 (R1). After having been unable to move lower than 214.12 in the previous session, the share found buyers again around the same price level today at 214.70.
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 might speed up should prices move below the close-by swing low at 214.12 where further sell stops could get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Everest Re. Out of 647 times, RE closed higher 55.02% 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 57.81% with an average market move of 0.56%.