RNR closes within previous day's range after lackluster session
RenaissanceRe Holdings Ltd. (RNR) Technical Analysis Report for Aug 05, 2020 | by Techniquant Editorial Team
RNR finished Wednesday at 182.59 gaining $1.91 (1.06%) on low volume, slightly outperforming the S&P 500 (0.64%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (RNR as at Aug 05, 2020):
Wednesday's trading range has been $3.14 (1.71%), that's below the last trading month's daily average range of $4.26. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for RNR.
After having been unable to move above 183.30 in the prior session, the market ran into sellers again around the same price level today, failing to move higher than 183.48. The last time this happened on July 31st, RNR actually gained 1.40% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 185.38 where further buy stops could get activated. Selling might accelerate should prices move below the nearby swing low at 179.28 where further sell stops could get triggered.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous High" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for RenaissanceRe Holdings. Out of 601 times, RNR closed higher 57.57% 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 58.57% with an average market move of 0.61%.