RTY closes within previous day's range after lackluster session
Russell 2000 Index (RTY) Technical Analysis Report for Apr 16, 2019 | by Techniquant Editorial Team
RTY finished Tuesday at 1582.79 gaining $3.62 (0.23%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (RTY as at Apr 16, 2019):
Tuesday's trading range has been $5.94 (0.38%), that's far below the last trading month's daily average range of $18.17. 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 RTY. Prices continued to consolidate within a tight trading range between 1574.73 and 1589.73 where it has been caught now for the last three trading days.
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.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 1589.73 where further buy stops could get activated. Selling might speed up should prices move below the nearby swing low at 1574.73 where further sell stops could get triggered. With prices trading close to this year's high at 1602.10, upside momentum might accelerate should the stock index be able to break out to new highs for the year. Further buying could move prices higher should the market test March's close-by high at 1594.24.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Russell 2000. Out of 505 times, RTY closed higher 57.62% 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 60.00% with an average market move of 0.80%.