TRV closes above its opening price after recovering from early selling pressure
The Travelers Companies Inc. (TRV) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
TRV finished Thursday at 98.67 gaining $6.49 (7.04%), outperforming the Dow Indu. (6.38%). Trading up to $2.99 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Wednesday's high at 94.96, the share confirmed its breakout through the previous session high after trading up to $3.97 above it intraday.
Daily Candlestick Chart (TRV as at Mar 26, 2020):
Thursday's trading range has been $8.83 (9.49%), that's slightly above the last trading month's daily average range of $7.89. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for TRV.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on March 19th, TRV gained 4.00% on the following trading day.
Buyers managed to take out the key technical resistance level at 94.18 (now S1), which is likely to act as support going forward.
The trend is clearly bearish, showing an intact downtrend 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 "White Candle" stand out. Its common bullish interpretation has been confirmed for The Travelers. Out of 613 times, TRV closed higher 51.55% 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 57.75% with an average market move of 0.34%.