RIOT finds buyers at key support level
Riot Blockchain Inc (RIOT) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
RIOT finished the month 18.92% higher at 2.64 after gaining $0.09 (3.53%) today, strongly outperforming the S&P 500 (0.77%). Trading up to $0.17 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (RIOT as at Jul 31, 2020):
Friday's trading range has been $0.37 (14.23%), that's above the last trading month's daily average range of $0.23. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for RIOT.
Two candlestick patterns are matching today's price action, the Bullish High-Wave Candle and the Bullish Spinning Top which are both known as bullish patterns. The last time a Bullish High-Wave Candle showed up on June 23rd, RIOT actually lost -8.85% on the following trading day.
After trading down to 2.43 earlier during the day, Riot Blockchain bounced off the key technical support level at 2.49 (S1). The failure to close below the support could increase that levels significance as support going forward. Prices are trading close to the key technical resistance level at 2.84 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bullish Intraday Reversal" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Riot Blockchain. Out of 327 times, RIOT closed lower 57.19% 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 60.24% with an average market move of -0.65%.