RNR breaks back above 50-day moving average
RenaissanceRe Holdings Ltd. (RNR) Technical Analysis Report for Jul 10, 2020 | by Techniquant Editorial Team
RNR ended the week 1.34% higher at 174.29 after surging $7.36 (4.41%) today, significantly outperforming the S&P 500 (1.05%). This is the biggest single-day gain in over a month. The last time we've seen such an unusually strong single-day gain on June 3rd, RNR gained 4.74% on the following trading day. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 170.19, the stock confirmed its breakout through the prior session high after trading up to $4.50 above it intraday.
Daily Candlestick Chart (RNR as at Jul 10, 2020):
Friday's trading range has been $9.22 (5.54%), that's far above the last trading month's daily average range of $5.47. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for RNR.
Notwithstanding 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.
The market managed to close back above the 50-day moving average at 169.86. Prices are trading close to the key technical resistance level at 175.47 (R1). After having been unable to move lower than 164.83 in the prior session, RenaissanceRe Holdings found buyers again around the same price level today at 165.47.
RNR shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the close-by swing high at 178.30 where further buy stops could get activated.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous low" stand out. Its common bullish interpretation has been confirmed for RenaissanceRe Holdings. Out of 582 times, RNR closed higher 51.20% 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 59.62% with an average market move of 0.52%.