RBS.L closes above its opening price after recovering from early selling pressure
Royal Bank of Scotland PLC (RBS.L) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, RBS.L finished Wednesday at 242.50 gaining £2.20 (0.92%), slightly outperforming the FTSE 100 (0.81%). Trading up to £2.00 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (RBS.L as at Feb 13, 2019):
Wednesday's trading range has been £4.40 (1.82%), that's slightly below the last trading month's daily average range of £5.50. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for RBS.L.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
RBS managed to close back above the 20-day moving average at 241.59 for the first time since February 7th. When this moving average was crossed above the last time on December 28, 2018, RBS.L gained 1.21% on the following trading day.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the four 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. Although it is usually interpreted as bullish, it has actually shown to be bearish for RBS. Out of 149 times, RBS.L closed lower 52.35% of the time on the next trading day after the market condition occurred.