RLJ fails to close above 20-day moving average
RLJ Lodging Trust of Beneficial Interest $0.01 par value (RLJ) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, RLJ ended Thursday at 8.51 gaining $0.45 (5.58%), underperforming the S&P 500 (6.24%). Closing above Wednesday's high at 8.34, the stock confirmed its breakout through the previous session high after trading up to $0.60 above it intraday.
Daily Candlestick Chart (RLJ as at Mar 26, 2020):
Thursday's trading range has been $0.84 (10.31%), that's below the last trading month's daily average range of $1.08. 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 significantly higher than usual for RLJ.
After spiking up to 8.94 during the day, the market found resistance at the 20-day moving average at 8.81. The last time this happened on February 11th, RLJ actually gained 2.35% on the following trading day.
While RLJ Lodging is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 20" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for RLJ Lodging. Out of 51 times, RLJ closed higher 54.90% of the time on the next trading day after the market condition occurred.