R finds buyers at key support level
Ryder System Inc. (R) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, R finished the month -2.35% lower at 36.63 after losing $1.00 (-2.66%) today, strongly underperforming the Dow Comp. (0.52%). Today's close at 36.63 marks the lowest recorded closing price since July 1st. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (R as at Jul 31, 2020):
Friday's trading range has been $2.10 (5.6%), that's slightly above the last trading month's daily average range of $1.94. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for R.
After trading down to 35.39 earlier during the day, the stock bounced off the key technical support level at 35.55 (S1). The failure to close below the support could increase that levels importance as support going forward. When prices bounced off a significant support level the last time on July 20th, R gained 2.84% on the following trading day.
Although the share is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Further selling could move prices lower should the market test June's close-by low at 33.86.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Ryder System. Out of 412 times, R closed higher 55.34% 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 52.67% with an average market move of 0.34%.