RIO.L plummets, losing £130.00 (-3.27%) within a single day
Rio Tinto Group (RIO.L) Technical Analysis Report for Nov 09, 2018 | by Techniquant Editorial Team
RIO.L finished the week -2.39% lower at 3849.50 after tanking £130.00 (-3.27%) today, strongly underperforming the FTSE 100 (-0.5%). This is the biggest single-day loss in over a month. The bears were in full control today, moving the market lower throughout the whole session.
Daily Candlestick Chart (RIO.L as at Nov 09, 2018):
Friday's trading range has been £136.00 (3.45%), that's far above the last trading month's daily average range of £98.85. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for RIO.L.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Black Candle.
Prices are trading close to the key technical support level at 3782.00 (S1). The stock closed back below the 200-day moving average at 3914.78. When this moving average was crossed below the last time on Tuesday, RIO.L actually gained 1.60% on the following trading day.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 200" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Rio Tinto. Out of 48 times, RIO.L closed higher 68.75% 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 two trading days, showing a win rate of 56.25% with an average market move of 0.06%.