RIG closes lower for the 2nd day in a row
Transocean Ltd (RIG) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, RIG finished the week -4.84% lower at 4.52 after losing $0.14 (-3.0%) today, significantly underperforming the S&P 500 (0.18%). Closing below Thursday's low at 4.55, the share confirmed its breakout through the prior session low after trading up to $0.15 below it intraday.
Daily Candlestick Chart (RIG as at Feb 14, 2020):
Friday's trading range has been $0.34 (7.23%), that's far above the last trading month's daily average range of $0.25. Things look different on the weekly timeframe, where the market's trading range of the last week has been way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for RIG.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
After having been unable to move above 4.71 in the previous session, the stock ran into sellers again around the same price level today, failing to move higher than 4.74. The last time this happened on Tuesday, RIG actually gained 4.24% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Its common bearish interpretation has been confirmed for Transocean Ltd. Out of 309 times, RIG closed lower 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 short side has been after 10 trading days, showing a win rate of 54.37% with an average market move of -0.74%.