RL pushes through Thursday's high
Ralph Lauren Corporation (RL) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, RL finished the week -3.99% lower at 121.42 after gaining $3.77 (3.2%) today on high volume, notably outperforming the S&P 500 (1.42%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 120.30, the share confirmed its breakout through the prior session high after trading up to $1.59 above it intraday.
Daily Candlestick Chart (RL as at Oct 12, 2018):
Friday's trading range has been $2.76 (2.31%), that's below the last trading month's daily average range of $3.67. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for RL.
One bullish candlestick pattern matches today's price action, the White Candle.
Polo Ralph managed to break above the 200-day moving average at 121.17 today. When this moving average was crossed above the last time on August 8, 2017, RL actually lost -1.67% on the following trading day.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 130.74.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed above last periods high" stand out. Its common bullish interpretation has been confirmed for Polo Ralph. Out of 472 times, RL closed higher 52.12% 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 54.45% with an average market move of 0.70%.