RL closes higher for the 5th day in a row
Ralph Lauren Corporation (RL) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, RL ended Wednesday at 81.27 gaining $0.65 (0.81%), significantly outperforming the S&P 500 (-0.46%). Today's close at 81.27 marks the highest recorded closing price since June 9th. Trading $1.32 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (RL as at Sep 16, 2020):
Wednesday's trading range has been $1.58 (1.94%), that's below the last trading month's daily average range of $2.33. 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 higher than usual for RL.
One bearish candlestick pattern matches today's price action, the Shooting Star.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and might now be heading back down towards the mean of the Bollinger Bands at 72.44. The last time this happened on September 9th, RL actually gained 2.72% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed below the upper Bollinger Band" stand out. Its common bearish interpretation has been confirmed for Ralph Lauren. Out of 85 times, RL closed lower 57.65% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 52.94% with an average market move of -0.77%.