ROK stuck within tight trading range
Rockwell Automation Inc. (ROK) Technical Analysis Report for Jul 02, 2020 | by Techniquant Editorial Team
ROK finished Thursday at 210.99 edging higher $0.49 (0.23%), slightly underperforming the S&P 500 (0.45%) ahead of tomorrow's Independence Day OBS market holiday. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (ROK as at Jul 02, 2020):
Thursday's trading range has been $4.14 (1.94%), that's below the last trading month's daily average range of $5.93. 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. Prices continued to consolidate within a tight trading range between 208.89 and 214.81 where it has been caught now for the last three trading days.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on June 23rd, ROK lost -1.75% on the following trading day.
Prices are trading close to the key technical resistance level at 213.24 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Further selling could move prices lower should the market test June's nearby low at 200.60.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Black Candle" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Rockwell Automation. Out of 512 times, ROK closed higher 50.98% 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 60.55% with an average market move of 1.07%.