RH closes higher for the 3rd day in a row
RH (RH) Technical Analysis Report for Jun 11, 2019 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, RH finished Tuesday at 93.25 edging higher $0.85 (0.92%), outperforming the S&P 500 (-0.03%). Trading up to $1.27 lower after the open, the stock 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 failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (RH as at Jun 11, 2019):
Tuesday's trading range has been $3.61 (3.88%), that's slightly below the last trading month's daily average range of $3.66. 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 slightly lower than usual for RH.
Four candlestick patterns are matching today's price action, the Bearish Doji Star, the Gravestone Doji and the Northern Doji which are known as bearish patterns and one neutral pattern, the Doji. The last time a Gravestone Doji showed up on January 24th, RH actually gained 4.16% on the following trading day.
Though the market is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Gravestone Doji" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for RH. Out of 28 times, RH closed higher 53.57% 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 71.43% with an average market move of 3.69%.