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

By David Diaz

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 $40.53 and $40.92 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.

In the past 52 weeks, Essent Group Ltd share prices have been bracketed by a low of $31.08 and a high of $47.95 and closed yesterday at $40.90, 32% above that low price. The 200-day and 50-day moving averages have moved 0.22% higher and 0.26% higher over the past week, respectively.

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.

Potential upside of 20.6% exists for Essent Group Ltd, based on a current level of $40.90 and analysts' average consensus price target of $49.31. The stock should find initial support at its 200-day moving average (MA) of $38.38 and further support at its 50-day MA of $36.44.

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 $35.05. Since that recommendation, shares of Essent Group Ltd have risen 16.8%. 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