RIG finds buyers around 2.00 for the third day in a row
Transocean Ltd (RIG) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
RIG ended the month 11.48% higher at 2.04 after losing $0.04 (-1.92%) today, strongly underperforming the S&P 500 (0.77%). 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 Jul 31, 2020):
Friday's trading range has been $0.11 (5.29%), that's below the last trading month's daily average range of $0.15. 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 RIG.
Prices are trading close to the key technical support level at 1.94 (S1). The market found buyers again today around 2.00 for the third trading day in a row after having found demand at 2.00 in the prior session and at 2.02 two days ago. The last time this happened on June 1st, RIG gained 2.16% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 2.19 where further buy stops could get triggered. Selling might speed up should prices move below the nearby swing low at 1.98 where further sell stops could get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. While it is usually interpreted as neutral, it has actually shown to be bearish for Transocean Ltd. Out of 772 times, RIG closed lower 51.68% 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 56.35% with an average market move of -0.69%.