RL finds buyers again around 74.79
Ralph Lauren Corporation (RL) Technical Analysis Report for Jun 01, 2020 | by Techniquant Editorial Team
RL ended Monday at 76.71 gaining $1.20 (1.59%) on low volume, notably outperforming the S&P 500 (0.38%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (RL as at Jun 01, 2020):
Monday's trading range has been $3.14 (4.18%), that's slightly below the last trading month's daily average range of $3.79. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for RL.
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 White Candle.
Prices are trading close to the key technical resistance level at 78.23 (R1). After having been unable to move lower than 74.26 in the prior session, the share found buyers again around the same price level today at 74.79. The last time this happened on May 7th, RL gained 2.63% on the following trading day.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Selling could speed up should prices move below the close-by swing low at 74.26 where further sell stops might get activated.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous low" stand out. Its common bullish interpretation has been confirmed for Ralph Lauren. Out of 528 times, RL closed higher 52.08% of the time on the next trading day after the market condition occurred.