RMD breaks back above 200-day moving average
ResMed Inc. (RMD) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, RMD ended Thursday at 146.52 gaining $10.81 (7.97%), strongly outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 140.52, the market confirmed its breakout through the previous session high after trading up to $6.25 above it intraday.
Daily Candlestick Chart (RMD as at Mar 26, 2020):
Thursday's trading range has been $11.74 (8.66%), that's slightly above the last trading month's daily average range of $11.46. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for RMD.
One bullish candlestick pattern matches today's price action, the White Candle.
The stock managed to close back above the 200-day moving average at 143.02 for the first time since March 18th. When this moving average was crossed above the last time on March 17th, RMD actually lost -6.00% on the following trading day. Prices are trading close to the key technical resistance level at 147.17 (R1).
While the share 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 eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Up Move" stand out. Its common bullish interpretation has been confirmed for ResMed. Out of 363 times, RMD closed higher 57.02% 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 60.33% with an average market move of 0.91%.