RBC enters Death Cross for the first time since December 12, 2019
Regal Beloit Corporation (RBC) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, RBC ended Thursday at 62.89 gaining $2.38 (3.93%) on low volume, significantly underperforming the S&P 500 (6.24%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (RBC as at Mar 26, 2020):
Thursday's trading range has been $3.63 (5.98%), that's slightly below the last trading month's daily average range of $4.61. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for RBC.
One bullish candlestick pattern matches today's price action, the White Candle.
Unable to break through the key technical resistance level at 63.27 (R1), Regal Beloit closed below it after spiking up to 63.99 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. When prices bounced off a significant resistance level the last time on March 12th, RBC actually gained 6.65% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term. With its 50-day moving average crossing below its 200-day moving average, the market has entered a so-called "Death Cross" for the first time since December 12, 2019. Showing increasing downward momentum in the short and medium-term the "Death Cross" is known to indicate a potential bear market on the horizon.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Death Cross" stand out. Its common bearish interpretation has been confirmed for Regal Beloit. Out of 9 times, RBC closed lower 66.67% of the time on the next trading day after the market condition occurred.