RSX breaks back above 20-day moving average
VanEck Vectors Russia ETF (RSX) Technical Analysis Report for Jul 02, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, RSX finished Thursday at 21.22 gaining $0.30 (1.43%) ahead of tomorrow's Independence Day OBS market holiday. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (RSX as at Jul 02, 2020):
Thursday's trading range has been $0.21 (0.99%), that's far below the last trading month's daily average range of $0.37. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for RSX.
The market managed to close back above the 20-day moving average at 21.16 for the first time since June 25th. When this moving average was crossed above the last time on June 22nd, RSX gained 0.84% on the following trading day.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Further buying might move prices higher should the market test June's nearby high at 21.88. Further selling could move prices lower should the market test June's close-by low at 20.34.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for RSX. Out of 318 times, RSX closed higher 50.63% 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 53.46% with an average market move of 0.19%.