RNG unable to break through key resistance level
Ringcentral Inc. Class A (RNG) Technical Analysis Report for Oct 11, 2019 | by Techniquant Editorial Team
RNG ended the week 6.21% higher at 173.44 after losing $1.01 (-0.58%) today, notably underperforming the S&P 500 (1.09%). The bears were in full control today, moving the market lower throughout the whole session. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (RNG as at Oct 11, 2019):
Friday's trading range has been $4.74 (2.68%), that's slightly below the last trading month's daily average range of $5.75. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for RNG. Prices continued to consolidate within a tight trading range between 168.01 and 177.99 where it has been caught now for the whole last trading week.
Even with a strong opening the share closed below the prior day's open and close, forming a bearish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
Unable to break through the key technical resistance level at 177.00 (R1), Ringcentral closed below it after spiking up to 177.50 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. The market found buyers again today around 172.76 for the third trading day in a row after having found demand at 172.00 in the previous session and at 172.58 two days ago. The last time this happened on August 21st, RNG gained 1.69% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could accelerate should prices move below the close-by swing low at 172.00 where further sell stops might get triggered.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Ringcentral. Out of 406 times, RNG closed higher 55.67% 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 60.84% with an average market move of 2.32%.