ROK closes within previous day's range after lackluster session
Rockwell Automation Inc. (ROK) Technical Analysis Report for Jul 08, 2020 | by Techniquant Editorial Team
ROK finished Wednesday at 212.28 gaining $0.84 (0.4%), slightly underperforming the S&P 500 (0.78%). 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 Jul 08, 2020):
Wednesday's trading range has been $2.31 (1.09%), that's far below the last trading month's daily average range of $5.62. 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.
Prices are trading close to the key technical resistance level at 213.24 (R1). After having been unable to move lower than 210.97 in the previous session, the share found buyers again around the same price level today at 210.75. The last time this happened on July 1st, ROK gained 0.23% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 215.71 where further buy stops might get triggered.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior low" stand out. Its common bullish interpretation has been confirmed for Rockwell Automation. Out of 537 times, ROK closed higher 52.89% 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 57.17% with an average market move of 0.99%.