RSX closes higher for the 4th day in a row
VanEck Vectors Russia ETF (RSX) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, RSX ended Thursday at 17.23 gaining $0.38 (2.26%) on low volume. Closing above Wednesday's high at 17.17, the market confirmed its breakout through the previous session high after trading up to $0.12 above it intraday.
Daily Candlestick Chart (RSX as at Mar 26, 2020):
Thursday's trading range has been $0.57 (3.38%), that's below the last trading month's daily average range of $0.93. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for RSX.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
Prices are trading close to the key technical resistance level at 17.44 (R1). After having been unable to move above 17.17 in the prior session, the ETF ran into sellers again around the same price level today, failing to move higher than 17.29. The last time this happened on Monday, RSX actually gained 8.49% on the following trading day.
Though RSX is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous High" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for RSX. Out of 450 times, RSX closed higher 56.00% 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 53.78% with an average market move of 0.25%.