RL pushes through Thursday's high
Ralph Lauren Corporation (RL) Technical Analysis Report for Jul 12, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, RL finished the week 1.33% higher at 112.47 after gaining $1.36 (1.22%) today, outperforming the S&P 500 (0.46%). Closing above Thursday's high at 111.36, the stock confirmed its breakout through the prior session high after trading up to $2.26 above it intraday.
Daily Candlestick Chart (RL as at Jul 12, 2019):
Friday's trading range has been $2.56 (2.3%), that's slightly below the last trading month's daily average range of $2.73. 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 RL.
Prices are trading close to the key technical support level at 110.76 (S1). After spiking up to 113.62 during the day, Ralph Lauren found resistance at the 20-day moving average at 112.81. The last time this happened on June 5th, RL lost -1.36% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) above 80" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Ralph Lauren. Out of 292 times, RL closed higher 52.05% 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 54.79% with an average market move of 0.08%.