RIO.AX closes within previous day's range after lackluster session
Rio Tinto Ltd (RIO.AX) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
RIO.AX finished the week 3.67% higher at 79.65 after losing $0.48 (-0.6%) today, slightly underperforming the ASX 50 (-0.34%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (RIO.AX as at Jan 11, 2019):
Friday's trading range has been $0.75 (0.94%), that's far below the last trading month's daily average range of $1.45. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for RIO.AX. Prices continued to consolidate within a tight trading range between 79.09 and 80.77 where it has been caught now for the last three trading days.
Prices are trading close to the key technical support level at 79.55 (S1). After having been unable to move lower than 79.46 in the previous session, the market found buyers again around the same price level today at 79.43. The last time this happened on Tuesday, RIO.AX gained 0.91% 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 nearby swing high at 80.77 where further buy stops could get triggered.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Rio Tinto. Out of 662 times, RIO.AX closed higher 53.93% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 53.32% with an average market move of 0.81%.