RNG closes below its opening price unable to hold early session gains
Ringcentral Inc. Class A (RNG) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
RNG finished the week 16.83% higher at 242.39 after losing $0.46 (-0.19%) today, slightly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading $2.67 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on Tuesday, RNG actually gained 3.58% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (RNG as at Feb 14, 2020):
Friday's trading range has been $6.75 (2.77%), that's slightly above the last trading month's daily average range of $6.67. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for RNG.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day while might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 209.18.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Ringcentral. Out of 230 times, RNG closed higher 53.91% 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 63.91% with an average market move of 2.98%.