RJF closes below its opening price unable to hold early session gains
Raymond James Financial Inc. (RJF) Technical Analysis Report for Jul 16, 2019 | by Techniquant Editorial Team
RJF ended Tuesday at 85.87 edging higher $0.31 (0.36%) on low volume, outperforming the S&P 500 (-0.34%). Trading $0.79 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on June 3rd, RJF actually gained 3.75% on the following trading day. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (RJF as at Jul 16, 2019):
Tuesday's trading range has been $1.53 (1.78%), that's slightly above the last trading month's daily average range of $1.52. Things look different on the weekly timeframe, where the market's trading range of the last week has been way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for RJF. Prices continued to consolidate within a tight trading range between 85.04 and 86.75 where it has been caught now for the last three trading days.
Two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Bearish High-Wave Candle which are both known as bearish patterns.
After trading down to 85.22 earlier during the day, the market bounced off the key technical support level at 85.54 (S1). The failure to close below the support could increase that levels importance as support going forward. The share found buyers again today around 85.22 for the third trading day in a row after having found demand at 85.04 in the previous session and at 85.23 two days ago.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Selling might speed up should prices move below the close-by swing low at 85.04 where further sell stops could get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior two Lows" stand out. Its common bullish interpretation has been confirmed for Raymond James. Out of 100 times, RJF closed higher 53.00% 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 64.00% with an average market move of 1.93%.