RMD runs into sellers around 195.50 for the forth day in a row
ResMed Inc. (RMD) Technical Analysis Report for Jul 14, 2020 | by Techniquant Editorial Team
RMD finished Tuesday at 195.04 surging $6.95 (3.7%), notably outperforming the S&P 500 (1.34%). This is the biggest single-day gain in over three months. The last time we've seen such an unusually strong single-day gain on June 10th, RMD actually lost -4.98% on the following trading day. Today's close at 195.04 marks the highest recorded closing price ever. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 194.98, the stock confirmed its breakout through the previous session high after trading up to $0.52 above it intraday.
Daily Candlestick Chart (RMD as at Jul 14, 2020):
Tuesday's trading range has been $8.05 (4.28%), that's far above the last trading month's daily average range of $4.94. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for RMD. Prices continued to consolidate within a tight trading range between 187.22 and 195.50 where it has been caught now for the whole last trading week.
In spite of a weak opening ResMed managed to close above the prior day's open and close, forming a bullish Engulfing Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
The market was sold again around 195.50 after having seen highs at 194.98, 195.36 and 195.09 in the last three trading sessions. Obviously there is something going on at that level.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous three Highs" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for ResMed. Out of 13 times, RMD closed higher 100.00% 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 76.92% with an average market move of 4.17%.