RSP closes within previous day's range
Guggenheim S&P 500 Equal Weight ETF (RSP) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, RSP ended Wednesday at 111.63 gaining $0.74 (0.67%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (RSP as at Sep 16, 2020):
Wednesday's trading range has been $1.64 (1.47%), that's slightly above the last trading month's daily average range of $1.50. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for RSP.
Two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Shooting Star. The last time a Shooting Star showed up on April 20th, RSP lost -2.92% on the following trading day.
Prices are trading close to the key technical support level at 110.94 (S1).
Though the ETF is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Spinning Top" stand out. Its common bullish interpretation has been confirmed for RSP. Out of 192 times, RSP closed higher 52.60% 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 63.54% with an average market move of 0.86%.