RNR finds support at 50-day moving average
RenaissanceRe Holdings Ltd. (RNR) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, RNR finished the month 1.89% higher at 171.03 after gaining $3.30 (1.97%) today, slightly outperforming the S&P 500 (1.54%). The bulls were in full control today, moving the market higher throughout the whole session. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (RNR as at Jun 30, 2020):
Tuesday's trading range has been $5.44 (3.25%), that's slightly below the last trading month's daily average range of $6.57. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for RNR. Prices continued to consolidate within a tight trading range between 166.32 and 175.47 where it has been caught now for the whole last trading week.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. The last time this happened on June 25th, RNR actually lost -4.49% on the following trading day. Despite a weak opening the share managed to close above the previous day's open and close, forming a bullish Engulfing Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
After trading as low as 166.32 during the day, the market found support at the 50-day moving average at 166.48. The stock found buyers again today around 166.32 for the third trading day in a row after having found demand at 166.35 in the prior session and at 167.22 two days ago.
RenaissanceRe Holdings shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could speed up should prices move above the close-by swing high at 175.47 where further buy stops might get activated. As prices are trading close to June's low at 162.18, downside momentum could accelerate should RNR mark new lows for the month.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 50" stand out. Its common bullish interpretation has been confirmed for RenaissanceRe Holdings. Out of 43 times, RNR closed higher 67.44% 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 53.49% with an average market move of 0.55%.