RH stuck within tight trading range
RH (RH) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
RH ended Wednesday at 381.54 gaining $7.30 (1.95%), strongly outperforming the S&P 500 (-0.46%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (RH as at Sep 16, 2020):
Wednesday's trading range has been $19.26 (5.08%), that's slightly above the last trading month's daily average range of $15.86. 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 significantly higher than usual for RH. Prices continued to consolidate within a tight trading range between 367.70 and 395.00 where it has been caught now for the last three trading days.
Three candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and two bearish patterns, the Bearish Hikkake Pattern and the Shooting Star. The last time a Shooting Star showed up on July 7th, RH actually gained 3.03% on the following trading day.
Prices are trading close to the key technical support level at 367.70 (S1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might speed up should prices move below the nearby swing low at 367.70 where further sell stops could get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Hikkake Pattern" stand out. Its common bearish interpretation has been confirmed for RH. Out of 110 times, RH closed lower 61.82% of the time on the next trading day after the market condition occurred.