RES closes above its opening price after recovering from early selling pressure
RPC Inc. (RES) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, RES finished Wednesday at 3.15 gaining $0.08 (2.61%), significantly outperforming the S&P 500 (-0.46%). Trading up to $0.09 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (RES as at Sep 16, 2020):
Wednesday's trading range has been $0.20 (6.47%), that's above the last trading month's daily average range of $0.17. 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 RES.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. The last time this happened on July 20th, RES gained 8.60% on the following trading day.
Buyers managed to take out the key technical resistance level at 3.12 (now S1), which is likely to act as support going forward. After spiking up to 3.20 during the day, RPC found resistance at the 50-day moving average at 3.19. After having been unable to move above 3.18 in the prior session, the stock ran into sellers again around the same price level today, failing to move higher than 3.20.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 3.27 where further buy stops could get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 50" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for RPC. Out of 27 times, RES closed higher 66.67% 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 70.37% with an average market move of 1.69%.