RSX closes within previous day's range
VanEck Vectors Russia ETF (RSX) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
RSX ended Wednesday at 22.23 edging lower $0.02 (-0.09%). Trading $0.16 higher after the open, the ETF was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (RSX as at Sep 16, 2020):
Wednesday's trading range has been $0.25 (1.12%), that's slightly below the last trading month's daily average range of $0.29. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for RSX.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar. Additionally, two candlestick patterns are matching today's price action, the Northern Doji which is known as bearish pattern and one neutral pattern, the Doji. The last time a Doji showed up on September 1st, RSX lost -2.59% on the following trading day.
The market closed back below the 50-day moving average at 22.26. After having been unable to move above 22.36 in the prior session, RSX ran into sellers again around the same price level today, missing to move higher than 22.40.
While 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 seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Outside Bar" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for RSX. Out of 73 times, RSX closed higher 71.23% 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 two trading days, showing a win rate of 63.01% with an average market move of 0.28%.