RMD finds buyers again around 200.80
ResMed Inc. (RMD) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
RMD finished the month 5.47% higher at 202.51 after losing $1.95 (-0.95%) today, strongly underperforming the S&P 500 (0.77%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (RMD as at Jul 31, 2020):
Friday's trading range has been $5.27 (2.56%), that's above the last trading month's daily average range of $4.43. 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 lower than usual for RMD.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar. Additionally, two candlestick patterns are matching today's price action, the Black Candle and the Dark Cloud Cover which are both known as bearish patterns. The last time a Black Candle showed up on Tuesday, RMD actually gained 0.92% on the following trading day.
After having been unable to move lower than 201.34 in the prior session, the stock found buyers again around the same price level today at 200.80.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 207.04 where further buy stops could get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Dark Cloud Cover" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for ResMed. Out of 9 times, RMD closed higher 66.67% 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 66.67% with an average market move of 1.31%.