RMD runs into sellers again around 112.18
ResMed Inc. (RMD) Technical Analysis Report for Dec 07, 2018 | by Techniquant Editorial Team
RMD finished the week -1.61% lower at 109.99 after tanking $2.36 (-2.1%) today, but still slightly outperforming the S&P 500 (-2.33%) following today's NFP report. This is the biggest single-day loss in over three weeks. The last time we've seen such an unusually strong single-day loss on November 12th, RMD lost -1.97% on the following trading day. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 110.16, the stock confirmed its breakout through the prior session low after trading up to $0.73 below it intraday.
Daily Candlestick Chart (RMD as at Dec 07, 2018):
Friday's trading range has been $2.75 (2.46%), that's slightly above the last trading month's daily average range of $2.43. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for RMD.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 108.78 (S1). After having been unable to move above 112.37 in the previous session, the share ran into sellers again around the same price level today, missing to move higher than 112.18.
The market shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Down Move" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for ResMed. Out of 251 times, RMD closed higher 55.78% 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 60.16% with an average market move of 1.16%.