RJF finds buyers again around 68.21
Raymond James Financial Inc. (RJF) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
RJF finished the month 0.94% higher at 69.48 after gaining $0.40 (0.58%) today, slightly underperforming the S&P 500 (0.77%). Trading up to $1.03 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (RJF as at Jul 31, 2020):
Friday's trading range has been $1.78 (2.57%), that's slightly below the last trading month's daily average range of $2.03. 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.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Unable to break through the key technical resistance level at 69.76 (R1), the market closed below it after spiking up to 69.99 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 68.01 in the prior session, the share found buyers again around the same price level today at 68.21. The last time this happened on Wednesday, RJF actually lost -3.40% on the following trading day.
Raymond James shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could speed up should prices move above the nearby swing high at 71.51 where further buy stops might get activated. Selling could accelerate should prices move below the close-by swing low at 68.01 where further sell stops might get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous High" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Raymond James. Out of 541 times, RJF closed higher 53.79% 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 59.70% with an average market move of 1.14%.