RLJ closes within prior day's range
RLJ Lodging Trust of Beneficial Interest $0.01 par value (RLJ) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, RLJ finished the month -15.15% lower at 8.01 after losing $0.20 (-2.44%) today, strongly underperforming the S&P 500 (0.77%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (RLJ as at Jul 31, 2020):
Friday's trading range has been $0.42 (5.15%), that's slightly below the last trading month's daily average range of $0.43. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for RLJ. Prices continued to consolidate within a tight trading range between 7.67 and 8.34 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the Bullish Hikkake Pattern.
After having been unable to move above 8.24 in the prior session, the share ran into sellers again around the same price level today, failing to move higher than 8.22. The last time this happened on July 16th, RLJ lost -4.62% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 8.34 where further buy stops might get triggered. Selling could accelerate should prices move below the close-by swing low at 7.67 where further sell stops might get activated. Trading close to May's low at 7.22 we could see further downside momentum if potential sell stops at the level get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Hikkake Pattern" stand out. Its common bullish interpretation has been confirmed for RLJ Lodging. Out of 106 times, RLJ closed higher 52.83% of the time on the next trading day after the market condition occurred.