RGA closes above its opening price after recovering from early selling pressure
Reinsurance Group of America Incorporated (RGA) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, RGA ended the week 0.42% higher at 154.22 after gaining $0.66 (0.43%) today, slightly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading up to $0.93 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 153.79, the stock confirmed its breakout through the prior session high after trading up to $0.47 above it intraday.
Daily Candlestick Chart (RGA as at Feb 14, 2020):
Friday's trading range has been $1.44 (0.94%), that's far below the last trading month's daily average range of $2.80. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for RGA.
After trading down to 152.82 earlier during the day, Reinsurance Group bounced off the key technical support level at 152.97 (S1). The failure to close below the support might increase that levels significance as support going forward. When prices bounced off a significant support level the last time on February 6th, RGA gained 0.09% on the following trading day. Prices are trading close to the key technical resistance level at 156.14 (R1).
Although the share is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might speed up should prices move above the nearby swing high at 155.95 where further buy stops could get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Reinsurance Group. Out of 430 times, RGA closed higher 57.21% 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 60.47% with an average market move of 0.53%.