RL closes within prior day's range
Ralph Lauren Corporation (RL) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, RL finished Thursday at 74.32 gaining $3.72 (5.27%), underperforming the S&P 500 (6.24%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (RL as at Mar 26, 2020):
Thursday's trading range has been $7.60 (10.69%), that's slightly above the last trading month's daily average range of $6.87. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for RL.
Prices are trading close to the key technical resistance level at 78.23 (R1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 78.97 where further buy stops might get activated.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) above 80" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Ralph Lauren. Out of 292 times, RL closed higher 51.71% 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 five trading days, showing a win rate of 53.42% with an average market move of -0.03%.