ROK dominated by bears dragging the market lower throughout the day
Rockwell Automation Inc. (ROK) Technical Analysis Report for Jul 07, 2020 | by Techniquant Editorial Team
ROK ended Tuesday at 211.44 losing $3.15 (-1.47%), slightly underperforming the S&P 500 (-1.08%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Monday's low at 212.59, Rockwell Automation confirmed its breakout through the prior session low after trading up to $1.63 below it intraday.
Daily Candlestick Chart (ROK as at Jul 07, 2020):
Tuesday's trading range has been $2.97 (1.39%), that's far below the last trading month's daily average range of $5.70. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower 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 10th, ROK lost -5.54% on the following trading day.
Prices broke below the key technical support level at 213.24 (now R1), which is likely to act as resistance going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 215.71 where further buy stops could get activated. Further selling might move prices lower should the market test June's close-by low at 200.60.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Black Candle" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Rockwell Automation. Out of 513 times, ROK closed higher 51.07% 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 60.62% with an average market move of 1.08%.