RUI closes within prior day's range after lackluster session
Russell 1000 Index (RUI) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
RUI ended the week 3.49% higher at 1632.46 after edging higher $4.38 (0.27%) today ahead of tomorrow's Memorial Day market holiday. Trading up to $7.69 lower after the open, the stock index managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on May 15th, RUI gained 3.23% on the following trading day. 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 (RUI as at May 22, 2020):
Friday's trading range has been $12.81 (0.79%), that's far below the last trading month's daily average range of $29.15. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for RUI. Prices continued to consolidate within a tight trading range between 1603.63 and 1644.13 where it has been caught now for the whole last trading week.
The Russell found buyers again today around 1620.29 for the third trading day in a row after having found demand at 1621.46 in the previous session and at 1621.92 two days ago.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could speed up should prices move above the close-by swing high at 1644.13 where further buy stops might get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior two Lows" stand out. Its common bullish interpretation has been confirmed for Russell 1000. Out of 71 times, RUI closed higher 64.79% 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 71.83% with an average market move of 0.73%.