RSX closes lower for the 2nd day in a row
VanEck Vectors Russia ETF (RSX) Technical Analysis Report for Aug 15, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, RSX ended Thursday at 21.60 losing $0.14 (-0.64%). Today's close at 21.60 marks the lowest recorded closing price since May 28th. Closing below Wednesday's low at 21.65, the market confirmed its breakout through the previous session low after trading up to $0.13 below it intraday.
Daily Candlestick Chart (RSX as at Aug 15, 2019):
Thursday's trading range has been $0.22 (1.01%), that's slightly below the last trading month's daily average range of $0.27. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for RSX.
Prices are trading close to the key technical support level at 21.38 (S1). Prices are trading close to the key technical resistance level at 21.79 (R1).
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 22.93. The last time this happened on August 6th, RSX gained 0.18% on the following trading day.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed below last periods low" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for RSX. Out of 279 times, RSX closed higher 55.91% 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 eight trading days, showing a win rate of 52.69% with an average market move of 0.43%.