RIOT stuck within tight trading range
Riot Blockchain Inc (RIOT) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
RIOT ended the month 3.74% higher at 2.22 after gaining $0.08 (3.74%) today, strongly outperforming the S&P 500 (1.54%). Closing above Monday's high at 2.18, Riot Blockchain confirmed its breakout through the prior session high after trading up to $0.18 above it intraday.
Daily Candlestick Chart (RIOT as at Jun 30, 2020):
Tuesday's trading range has been $0.28 (13.33%), that's slightly below the last trading month's daily average range of $0.30. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for RIOT. Prices continued to consolidate within a tight trading range between 2.04 and 2.36 where it has been caught now for the last three trading days.
Even with a weak opening the stock managed to close above the previous day's open and close, forming a bullish Engulfing Candle. The last time this candlestick pattern showed up on December 6, 2019, RIOT actually lost -2.27% on the following trading day.
Prices are trading close to the key technical support level at 2.11 (S1).
Although the share is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Selling could speed up should prices move below the nearby swing low at 2.04 where further sell stops might get activated.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed above last periods high" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Riot Blockchain. Out of 269 times, RIOT closed lower 57.62% 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 nine trading days, showing a win rate of 59.11% with an average market move of -0.94%.