RMD pushes through Thursday's high
ResMed Inc. (RMD) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
RMD ended the week -1.69% lower at 161.35 after edging higher $0.67 (0.42%) today on low volume, slightly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading up to $1.38 lower after the open, ResMed managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 161.32, the share confirmed its breakout through the previous session high after trading up to $1.75 above it intraday.
Daily Candlestick Chart (RMD as at May 22, 2020):
Friday's trading range has been $3.31 (2.05%), that's below the last trading month's daily average range of $5.32. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for RMD.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on Monday, RMD actually lost -2.75% on the following trading day.
After spiking up to 163.07 during the day, the stock found resistance at the 20-day moving average at 161.53.
Although the market is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Selling could accelerate should prices move below the nearby swing low at 158.09 where further sell stops might get activated. As prices are trading close to May's low at 153.12, downside momentum could speed up should RMD mark new lows for the month.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Spinning Top" stand out. Its common bullish interpretation has been confirmed for ResMed. Out of 240 times, RMD closed higher 60.83% 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 60.42% with an average market move of 1.50%.