RCL closes lower for the 2nd day in a row
Royal Caribbean Cruises Ltd. (RCL) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, RCL ended the week 1.44% higher at 113.16 after losing $0.46 (-0.4%) today, underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. 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 14, 2020):
Friday's trading range has been $1.18 (1.04%), that's far below the last trading month's daily average range of $3.73. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for RCL.
Two candlestick patterns are matching today's price action, the Takuri Line which is known as bullish pattern and one bearish pattern, the Bearish Spinning Top. The last time a Takuri Line showed up on October 31, 2019, RCL gained 2.16% on the following trading day.
Prices are trading close to the key technical support level at 111.36 (S1). Prices are trading close to the key technical resistance level at 115.75 (R1).
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Royal Caribbean. Out of 206 times, RCL closed higher 54.85% 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 62.62% with an average market move of 1.73%.