R dominated by bears dragging the market lower throughout the day
Ryder System Inc. (R) Technical Analysis Report for Jan 24, 2020 | by Techniquant Editorial Team
Moving lower for the 6th day in a row, R finished the week -6.47% lower at 51.75 after tanking $1.23 (-2.32%) today on high volume, notably underperforming the Dow Comp. (-0.46%). This is the biggest single-day loss in over a month. Today's close at 51.75 marks the lowest recorded closing price since December 11, 2019. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 51.94, the stock confirmed its breakout through the prior session low after trading up to $0.34 below it intraday.
Daily Candlestick Chart (R as at Jan 24, 2020):
Friday's trading range has been $1.51 (2.85%), that's above the last trading month's daily average range of $1.19. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for R.
Two candlestick patterns are matching today's price action, the Last Engulfing Bottom Pattern which is known as bullish pattern and one bearish pattern, the Black Candle.
Prices are trading close to the key technical support level at 50.86 (S1). The market closed below the 100-day moving average at 52.33 for the first time since December 5, 2019. After having been unable to move above 53.12 in the previous session, Ryder System ran into sellers again around the same price level today, missing to move higher than 53.11. The last time this happened on January 9th, R lost -1.10% on the following trading day.
Crossing below the lower Bollinger Band for the first time since October 4, 2019, prices have shown unusually strong downward momentum in the short-term. This could either indicate a potential selling climax after which prices might head back up towards the mean of the Bollinger Bands at 54.09 or signal the beginning of a strong momentum breakout leading to even lower prices.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Further selling could move prices lower should the market test December's nearby low at 50.77.
Among the 15 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "6 Consecutive Lower Closes" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Ryder System. Out of 14 times, R closed higher 57.14% 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 71.43% with an average market move of 1.86%.