RJF closes within previous day's range after lackluster session
Raymond James Financial Inc. (RJF) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, RJF ended Thursday at 64.67 gaining $3.89 (6.4%) on low volume, slightly outperforming the S&P 500 (6.24%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (RJF as at Mar 26, 2020):
Thursday's trading range has been $5.48 (8.95%), that's below the last trading month's daily average range of $6.71. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for RJF.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on March 17th, RJF actually lost -6.01% on the following trading day.
Prices are trading close to the key technical resistance level at 66.05 (R1). After having been unable to move above 65.34 in the previous session, the stock ran into sellers again around the same price level today, failing to move higher than 65.58.
Although the share is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Raymond James. Out of 535 times, RJF closed higher 53.08% 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 58.88% with an average market move of 0.92%.