RMD breaks back above 100-day moving average
ResMed Inc. (RMD) Technical Analysis Report for May 29, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, RMD ended the month 3.54% higher at 160.82 after gaining $2.00 (1.26%) today, outperforming the S&P 500 (0.48%). Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (RMD as at May 29, 2020):
Friday's trading range has been $4.51 (2.8%), that's below the last trading month's daily average range of $5.66. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for RMD.
Three candlestick patterns are matching today's price action, the Takuri Line which is known as bullish pattern, one bearish pattern, the Northern Doji and one neutral pattern, the Doji.
The stock managed to close back above the 100-day moving average at 159.54. After spiking up to 161.60 during the day, the market found resistance at the 20-day moving average at 161.59. The last time this happened on May 22nd, RMD lost -0.54% on the following trading day.
Although ResMed is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could speed up should prices move above the nearby swing high at 164.78 where further buy stops might get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for ResMed. Out of 787 times, RMD closed higher 57.05% 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 58.07% with an average market move of 0.76%.