RHI dominated by bears dragging the market lower throughout the day
Robert Half International Inc. (RHI) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, RHI ended the week 5.03% higher at 47.41 after losing $1.09 (-2.25%) today, significantly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. The bears were in full control today, moving the market lower throughout the whole session. Ending with a weak close near the low of the day sets a bearish note for the next session.
Daily Candlestick Chart (RHI as at May 22, 2020):
Friday's trading range has been $1.00 (2.08%), that's far below the last trading month's daily average range of $1.54. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for RHI.
Two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns. The last time a Bearish Short Candle showed up on May 11th, RHI lost -3.38% on the following trading day.
Prices are trading close to the key technical support level at 47.28 (S1).
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Short Candle" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Robert Half. Out of 64 times, RHI closed higher 54.69% 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 60.94% with an average market move of 0.98%.