RMD pushes through 200-day moving average
ResMed (RMD) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
RMD ended the week -5.97% lower at 103.25 after gaining $1.41 (1.38%) today, slightly underperforming the S&P 500 (1.42%). Trading $0.94 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 previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (RMD as at Oct 12, 2018):
Friday's trading range has been $2.35 (2.27%), that's above the last trading month's daily average range of $1.84. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for RMD.
Two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Bearish High-Wave Candle which are both known as bearish patterns.
ResMed managed to break above the 200-day moving average at 101.97 today. When this moving average was crossed above the last time on January 6, 2017, RMD gained 1.80% on the following trading day. Prices are trading close to the key technical resistance level at 104.66 (R1). After having been unable to move above 104.22 in the previous session, the share ran into sellers again around the same price level today, missing to move higher than 104.35.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and might now be heading back up towards the mean of the Bollinger Bands at 111.19.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed above the lower Bollinger Band" stand out. Its common bullish interpretation has been confirmed for ResMed. Out of 52 times, RMD closed higher 55.77% 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 10 trading days, showing a win rate of 65.38% with an average market move of 2.51%.