ROK dominated by bulls lifting the market higher throughout the day
Rockwell Automation Inc. (ROK) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, ROK finished the month -1.46% lower at 213.00 after gaining $4.33 (2.08%) today, outperforming the S&P 500 (1.54%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 209.48, the market confirmed its breakout through the previous session high after trading up to $4.20 above it intraday.
Daily Candlestick Chart (ROK as at Jun 30, 2020):
Tuesday's trading range has been $4.79 (2.29%), that's below the last trading month's daily average range of $5.99. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ROK.
One bullish candlestick pattern matches today's price action, the White Candle.
After spiking up to 213.68 during the day, Rockwell Automation found resistance at the 20-day moving average at 213.12. The last time this happened on April 2nd, ROK lost -1.96% on the following trading day.
Though the share is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) above 80" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Rockwell Automation. Out of 294 times, ROK closed higher 54.08% 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 57.48% with an average market move of 0.61%.