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Possible Bearish Inside Day Candle Pattern Detected for Essent Group Ltd (NYSE:ESNT)

By Amy Schwartz

SmarTrend's candlestick scanner has spotted a possible bearish inside day candle pattern in Essent Group Ltd (NYSE:ESNT) based on the price action in the company's shares. Yesterday's price range of $46.38 and $46.38 is within the prior day's high and low of the day. This trading action often signifies indecision by bulls and bears to drive prices higher or lower and often implies a possible change in trend. Owners of Essent Group Ltd may want to consider a possible hedge in the event a pullback occurs. Look for confirmation in the next few trading days.

Over the past year, Essent Group Ltd has traded in a range of $31.08 to $47.16 and closed yesterday at $46.38, 49% above that low. Over the last five market days, the 200-day moving average (MA) has gone up 0.4% while the 50-day MA has advanced 1.7%.

Potential upside of 6.3% exists for Essent Group Ltd, based on a current level of $46.38 and analysts' average consensus price target of $49.31. The stock should discover initial support at its 50-day moving average (MA) of $41.15 and subsequent support at its 200-day MA of $39.62.

Essent Group Ltd. operates as a holding company. The Company, through its subsidiaries, provides mortgage insurance and reinsurance coverage products and services on residential property loans for United States real estate.

SmarTrend recommended that subscribers consider buying shares of Essent Group Ltd on January 7th, 2019 as our proprietary SmarTrend analytics indicated a new Uptrend was in progress when shares hit $35.06. Since that recommendation, shares of Essent Group Ltd have risen 33.0%. We continue to monitor ESNT for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: bearish am inside day candle essent group ltd

Ticker(s): ESNT