ROK falls to lowest close since January 3rd
Rockwell Automation Inc. (ROK) Technical Analysis Report for Aug 15, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, ROK finished Thursday at 145.93 edging lower $0.99 (-0.67%), underperforming the S&P 500 (0.25%). Today's close at 145.93 marks the lowest recorded closing price since January 3rd. Closing below Wednesday's low at 146.62, Rockwell Automation confirmed its breakout through the previous session low after trading up to $1.45 below it intraday.
Daily Candlestick Chart (ROK as at Aug 15, 2019):
Thursday's trading range has been $2.17 (1.47%), that's far below the last trading month's daily average range of $4.38. 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 higher than usual for ROK.
Two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns. The last time a Bearish Short Candle showed up on June 25th, ROK actually gained 0.75% on the following trading day.
Prices are trading close to the key technical resistance level at 148.14 (R1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
2018's low at 141.46 is within reach and we might see further downside momentum should the market break out beyond.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) below 20" stand out. Its common bullish interpretation has been confirmed for Rockwell Automation. Out of 254 times, ROK closed higher 55.91% 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 62.20% with an average market move of 1.16%.