RIOT closes within previous day's range
Riot Blockchain Inc (RIOT) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
RIOT finished Wednesday at 3.05 edging higher $0.05 (1.67%), significantly outperforming the S&P 500 (-0.46%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (RIOT as at Sep 16, 2020):
Wednesday's trading range has been $0.32 (10.6%), that's slightly below the last trading month's daily average range of $0.33. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for RIOT.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Unable to break through the key technical resistance level at 3.15 (R1), Riot Blockchain closed below it after spiking up to 3.28 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. After having been unable to move lower than 2.95 in the previous session, the market found buyers again around the same price level today at 2.96. The last time this happened on September 11th, RIOT gained 3.78% on the following trading day.
While the share is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Selling might speed up should prices move below the close-by swing low at 2.75 where further sell stops could get activated. As prices are trading close to September's low at 2.54, downside momentum might accelerate should the stock mark new lows for the month.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Spinning Top" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Riot Blockchain. Out of 162 times, RIOT closed lower 52.47% of the time on the next trading day after the market condition occurred.