RIG closes within previous day's range after lackluster session
Transocean Ltd (RIG) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
RIG ended Thursday at 1.34 gaining $0.02 (1.52%) on low volume, significantly underperforming the S&P 500 (6.24%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (RIG as at Mar 26, 2020):
Thursday's trading range has been $0.19 (14.18%), that's below the last trading month's daily average range of $0.31. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for RIG.
One neutral candlestick pattern matches today's price action, the Doji. The last time a Doji showed up on March 16th, RIG gained 3.08% on the following trading day.
Prices are trading close to the key technical resistance level at 1.50 (R1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 1.53 where further buy stops could get activated.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Doji" stand out. While it is usually interpreted as neutral, it has actually shown to be bearish for Transocean Ltd. Out of 129 times, RIG closed lower 55.81% 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 61.24% with an average market move of -2.06%.