RUI closes higher for the 2nd day in a row
Russell 1000 Index (RUI) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, RUI finished the month 2.06% higher at 1717.47 after gaining $26.49 (1.57%) today. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 1691.38, the stock index confirmed its breakout through the previous session high after trading up to $31.87 above it intraday.
Daily Candlestick Chart (RUI as at Jun 30, 2020):
Tuesday's trading range has been $34.65 (2.05%), that's slightly below the last trading month's daily average range of $37.23. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for RUI.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 1706.22 (now S1), which is likely to act as support going forward. The last time this happened on June 23rd, RUI actually lost -2.64% on the following trading day. After spiking up to 1723.25 during the day, the Russell found resistance at the 20-day moving average at 1721.04.
The index shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the nearby swing high at 1746.93 where further buy stops could get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Russell 1000. Out of 346 times, RUI closed higher 59.54% 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 63.29% with an average market move of 0.40%.