The company’s Small & Medium Business Solutions segment engages in the sale, rental, and financing of mail finishing, mail creation, and shipping equipment and software; provision of supply, support, and other professional services; and provision of payment solutions. Its Enterprise Business Solutions segment sells, supports, and offers other professional services of high-speed, production mail systems, and sorting and production print equipment; and sells support services for non-equipment-based mailing, customer relationship and communication, and location intelligence software. Pitney Bowes Inc. markets its products through its sales force, direct mailings, outbound telemarketing, independent distributors, and the Internet to various businesses, governmental, institutional, and other organizations.
To review potential trading opportunities with Pitney’s stock, please take a look at the 1-year chart of PBI (Pitney Bowes, Inc.) below with my added notations:
From a technical perspective, there’s a whole lot going on with PBI. First, the stock has formed a definite resistance at $24 (red). After doing so, the stock broke its 6-month trend line of support. Now it appears that PBI may have formed a double top price pattern over the last 3 months.
Double tops are reversal patterns and are as simple as they sound: Rallying up to a point (T), selling off to a support, and then rallying back up again to approximately the same top (T). As with any price pattern, a confirmation of the pattern is needed. PBI would confirm its pattern by breaking below the $21 support (blue) area that has been created by the double top pattern.
The Tale of the Tape: PBI may have double topped. A long trade could be made at $21 or on a move above $24 (resistance). A short trade could be made on a support break of $21, which would confirm the double top pattern.
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