RSP dominated by bulls lifting the market higher throughout the day
Guggenheim S&P 500 Equal Weight ETF (RSP) Technical Analysis Report for Jul 10, 2020 | by Techniquant Editorial Team
RSP finished the week -0.16% lower at 102.07 after gaining $1.69 (1.68%) today on high volume. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 102.05, the market confirmed its breakout through the previous session high after trading up to $0.04 above it intraday.
Daily Candlestick Chart (RSP as at Jul 10, 2020):
Friday's trading range has been $1.81 (1.8%), that's slightly below the last trading month's daily average range of $2.31. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for RSP.
In spite of a weak opening the ETF managed to close above the prior day's open and close, forming a bullish Engulfing Candle. The last time this candlestick pattern showed up on April 2nd, RSP actually lost -1.61% on the following trading day. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
RSP ran into sellers again today around 102.09 for the third trading day in a row after having found sellers at 102.05 in the previous session and at 102.32 two days ago.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might accelerate should prices move above the close-by swing high at 104.27 where further buy stops could get activated. Further selling might move prices lower should the market test June's nearby low at 98.06.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Up Move" stand out. Its common bullish interpretation has been confirmed for RSP. Out of 403 times, RSP closed higher 55.33% 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 65.26% with an average market move of 0.41%.