RCL closes higher for the 3rd day in a row
Royal Caribbean Cruises Ltd. (RCL) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, RCL ended Wednesday at 117.84 gaining $1.55 (1.33%), significantly outperforming the S&P 500 (0.3%). Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (RCL as at Feb 13, 2019):
Wednesday's trading range has been $1.32 (1.12%), that's far below the last trading month's daily average range of $2.31. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for RCL.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on February 8th, RCL gained 1.10% on the following trading day.
Prices are trading close to the key technical support level at 117.10 (S1).
Royal Caribbean shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling could speed up should prices move below the nearby swing low at 115.34 where further sell stops might get triggered. With prices trading close to this year's high at 121.46, upside momentum could accelerate should the share be able to break out to new highs for the year. As prices are trading close to February's high at 121.00, upside momentum might speed up should the market mark new highs for the month.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Royal Caribbean. Out of 629 times, RCL closed higher 54.37% 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 58.35% with an average market move of 1.55%.