RUI breaks back above 50-day moving average
Russell 1000 Index (RUI) Technical Analysis Report for Oct 11, 2019 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, RUI ended the week 0.61% higher at 1640.93 after gaining $18.44 (1.14%) today. Closing above Thursday's high at 1628.03, the stock index confirmed its breakout through the prior session high after trading up to $25.13 above it intraday.
Daily Candlestick Chart (RUI as at Oct 11, 2019):
Friday's trading range has been $29.10 (1.79%), that's far above the last trading month's daily average range of $18.68. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for RUI.
One bullish candlestick pattern matches today's price action, the White Candle.
The Russell managed to close back above the 50-day moving average at 1623.41 for the first time since October 4th. Unable to break through the key technical resistance level at 1650.49 (R1), Russell 1000 closed below it after spiking up to 1653.16 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. When prices bounced off a significant resistance level the last time on September 27th, RUI actually gained 0.52% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 1678.28, upside momentum might speed up should the market be able to break out to new highs for the year. Further buying could move prices higher should the market test September's close-by high at 1670.52.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "White Candle" stand out. Its common bullish interpretation has been confirmed for Russell 1000. Out of 785 times, RUI closed higher 52.87% 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 65.22% with an average market move of 0.40%.