ROK closes above its opening price after recovering from early selling pressure
Rockwell Automation Inc. (ROK) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, ROK ended the week -1.01% lower at 200.68 after edging lower $0.47 (-0.23%) today on low volume, slightly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading up to $1.99 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Wednesday, ROK actually lost -2.28% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (ROK as at Feb 14, 2020):
Friday's trading range has been $2.59 (1.29%), that's below the last trading month's daily average range of $3.77. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ROK.
Four candlestick patterns are matching today's price action, the Bullish Doji Star, the Southern Doji and the Takuri Line which are known as bullish patterns and one neutral pattern, the Doji.
After trading as low as 198.65 during the day, the stock found support at the 20-day moving average at 200.33. Prices are trading close to the key technical resistance level at 201.42 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 207.94, upside momentum might speed up should Rockwell Automation be able to break out to new highs for the year.
Among the eight 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 56.69% 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 1.12%.