RIG closes within previous day's range
Transocean Ltd (RIG) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, RIG ended Wednesday at 1.08 gaining $0.01 (0.93%), notably outperforming the S&P 500 (-0.46%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (RIG as at Sep 16, 2020):
Wednesday's trading range has been $0.14 (13.21%), that's slightly 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.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on September 3rd, RIG gained 10.74% on the following trading day.
Prices are trading close to the key technical support level at 1.01 (S1). After having been unable to move lower than 1.02 in the prior session, the market found buyers again around the same price level today at 1.02.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Transocean Ltd. Out of 152 times, RIG closed lower 55.26% 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 54.61% with an average market move of -1.42%.