RGA closes above its opening price after recovering from early selling pressure
Reinsurance Group of America Incorporated (RGA) Technical Analysis Report for Jun 14, 2019 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, RGA finished the week 1.45% higher at 153.45 after surging $1.68 (1.11%) today, notably outperforming the S&P 500 (-0.16%). This is the biggest single-day gain in over four weeks. The last time we've seen such an unusually strong single-day gain on May 16th, RGA gained 0.46% on the following trading day. Today's close at 153.45 marks the highest recorded closing price since May 8, 2018. Trading up to $0.94 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (RGA as at Jun 14, 2019):
Friday's trading range has been $2.65 (1.74%), that's above the last trading month's daily average range of $2.31. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for RGA.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 152.13 (now S1), which is likely to act as support going forward.
Crossing above the upper Bollinger Band for the first time since April 16th, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 150.66 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near high of period" stand out. Its common bullish interpretation has been confirmed for Reinsurance Group. Out of 658 times, RGA closed higher 55.47% 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 61.09% with an average market move of 0.69%.