RIO.AX fails to close above 20-day moving average
Rio Tinto Ltd (RIO.AX) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
RIO.AX ended the week -2.54% lower at 78.03 after gaining $1.42 (1.85%) today. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 77.65, the share confirms its breakout through the prior session's high having traded $0.73 above it intraday.
Daily Candlestick Chart (RIO.AX as at Oct 12, 2018):
Friday's trading range was $1.21 (1.57%), that's slightly above last trading month's daily average range of $1.14. Things look different on a weekly scale, where volatility is slightly below the markets average with the monthly volatility being below average.
One bullish candlestick pattern matches today's price action, the White Candle.
After spiking up to 78.38 during the day, the market found resistance at the 20-day moving average at 78.12. The last time this happened on July 2nd, RIO.AX lost -3.00% on the following trading day.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend being bullish.
Among the four market conditions that our engine recognized today, the statistics for the Support/Resistance based condition "Bearish Bounce off SMA 20" stands out. It's common interpretation of being bearish has so far been confirmed for Rio Tinto in the past. Out of 111 times during the last ten years, RIO.AX closed lower 50.45% of the time on the next trading day. The optimal exit for swing trading this condition on the short side has been after two trading days, showing a win rate of 54.95% with an average market move of -0.04%.