RGA still stuck within tight trading range
Reinsurance Group of America Incorporated (RGA) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, RGA finished the month -13.56% lower at 78.44 after gaining $2.35 (3.09%) today, significantly 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 76.89, Reinsurance Group confirmed its breakout through the prior session high after trading up to $2.28 above it intraday.
Daily Candlestick Chart (RGA as at Jun 30, 2020):
Tuesday's trading range has been $3.90 (5.15%), that's slightly below the last trading month's daily average range of $4.69. 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. Prices continued to consolidate within a tight trading range between 74.10 and 80.00 where it has been caught now for the whole last trading week.
In spite of a weak opening the share managed to close above the previous day's open and close, forming a bullish Engulfing Candle. Additionally, two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern.
Buyers managed to take out the key technical resistance level at 77.37 (now S1), which is likely to act as support going forward. The last time this happened on June 25th, RGA actually lost -3.75% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might speed up should prices move below the nearby swing low at 74.10 where further sell stops could get activated.
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 626 times, RGA closed higher 53.51% 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 59.42% with an average market move of 0.18%.