RJF closes within previous day's range
Raymond James Financial Inc. (RJF) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
RJF ended Wednesday at 74.69 gaining $0.35 (0.47%) on high volume, outperforming the S&P 500 (-0.46%). Trading $1.56 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 September 3rd, RJF actually gained 0.68% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (RJF as at Sep 16, 2020):
Wednesday's trading range has been $2.19 (2.92%), that's slightly above the last trading month's daily average range of $1.96. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for RJF.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
After trading down to 74.30 earlier during the day, Raymond James bounced off the key technical support level at 74.33 (S1). The failure to close below the support could increase that levels importance as support going forward.
Although the share is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could speed up should prices move above the nearby swing high at 76.69 where further buy stops might get activated. Selling could accelerate should prices move below the close-by swing low at 73.43 where further sell stops might get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Raymond James. Out of 467 times, RJF closed higher 57.60% 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 58.46% with an average market move of 0.44%.