RNR closes below its opening price unable to hold early session gains
RenaissanceRe Holdings Ltd. (RNR) Technical Analysis Report for May 17, 2019 | by Techniquant Editorial Team
RNR ended the week 2.15% higher at 169.50 after losing $0.94 (-0.55%) today, but still slightly outperforming the S&P 500 (-0.58%). Trading $1.13 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (RNR as at May 17, 2019):
Friday's trading range has been $1.78 (1.05%), that's below the last trading month's daily average range of $2.77. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for RNR.
After moving higher in the previous session, the market closed lower but above the prior day's open today, forming a bearish Harami Candle. Additionally, two candlestick patterns are matching today's price action, the Northern Doji which is known as bearish pattern and one neutral pattern, the Doji. The last time a Doji showed up on May 9th, RNR gained 2.61% on the following trading day.
After having been unable to move above 170.55 in the previous session, the share ran into sellers again around the same price level today, missing to move higher than 170.68.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and could now be heading back down towards the mean of the Bollinger Bands at 158.59.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Harami Candle" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for RenaissanceRe Holdings. Out of 62 times, RNR closed higher 56.45% 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 67.74% with an average market move of 0.94%.