RHI finds buyers at key support level
Robert Half International Inc. (RHI) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, RHI finished the month -3.71% lower at 50.87 after edging lower $0.06 (-0.12%) today, underperforming the S&P 500 (0.77%). Today's close at 50.87 marks the lowest recorded closing price since July 10th. Trading up to $0.99 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 previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (RHI as at Jul 31, 2020):
Friday's trading range has been $1.23 (2.43%), that's slightly below the last trading month's daily average range of $1.37. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for RHI.
One bullish candlestick pattern matches today's price action, the Takuri Line. The last time a Takuri Line showed up on July 8th, RHI actually lost -2.49% on the following trading day.
After trading down to 49.72 earlier during the day, Robert Half bounced off the key technical support level at 50.28 (S1). The failure to close below the support could increase that levels significance as support going forward.
Although the stock is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Further selling could move prices lower should the market test June's close-by low at 48.46.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Robert Half. Out of 404 times, RHI closed higher 62.38% 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 55.94% with an average market move of 0.70%.