RBC closes within previous day's range
Regal Beloit Corporation (RBC) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
RBC finished Wednesday at 98.77 gaining $0.63 (0.64%), strongly outperforming the S&P 500 (-0.46%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (RBC as at Sep 16, 2020):
Wednesday's trading range has been $2.32 (2.35%), that's slightly above the last trading month's daily average range of $2.03. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for RBC.
Three candlestick patterns are matching today's price action, the Gravestone Doji and the Northern Doji which are both known as bearish patterns and one neutral pattern, the Doji.
The stock managed to close back above the 20-day moving average at 98.60 for the first time since September 9th. When this moving average was crossed above the last time on September 9th, RBC actually lost -2.38% on the following trading day.
Although the market is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Selling might speed up should prices move below the nearby swing low at 96.55 where further sell stops could get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. Its common bullish interpretation has been confirmed for Regal Beloit. Out of 143 times, RBC closed higher 53.85% 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 65.03% with an average market move of 1.35%.