RTY closes lower for the 3rd day in a row
Russell 2000 Index (RTY) Technical Analysis Report for Apr 22, 2019 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, RTY finished Monday at 1560.04 losing $5.71 (-0.36%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (RTY as at Apr 22, 2019):
Monday's trading range has been $10.76 (0.69%), that's below the last trading month's daily average range of $15.05. 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 RTY.
Prices are trading close to the key technical resistance level at 1568.40 (R1). After having been unable to move lower than 1556.11 in the previous session, the stock index found buyers again around the same price level today at 1554.46. The last time this happened on April 10th, RTY actually lost -0.15% on the following trading day.
Although the index is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
As prices are trading close to April's low at 1542.89, downside momentum might speed up should Russell 2000 mark new lows for the month.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior low" stand out. Its common bullish interpretation has been confirmed for Russell 2000. Out of 444 times, RTY closed higher 56.31% 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 60.36% with an average market move of 0.83%.