RSX finds buyers at key support level
VanEck Vectors Russia ETF (RSX) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, RSX ended the month 5.54% higher at 21.90 after losing $0.12 (-0.54%) today. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (RSX as at Jul 31, 2020):
Friday's trading range has been $0.27 (1.23%), that's slightly above the last trading month's daily average range of $0.26. 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 RSX.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
After trading down to 21.74 earlier during the day, the market bounced off the key technical support level at 21.88 (S1). The failure to close below the support could increase that levels importance as support going forward. After having been unable to move lower than 21.70 in the previous session, the ETF found buyers again around the same price level today at 21.74. The last time this happened on July 17th, RSX gained 2.12% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might accelerate should prices move below the nearby swing low at 21.70 where further sell stops could get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for RSX. Out of 292 times, RSX closed higher 59.25% 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 53.42% with an average market move of 0.36%.