ROK closes lower for the 2nd day in a row
Rockwell Automation Inc. (ROK) Technical Analysis Report for Jul 10, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, ROK finished the week -0.04% lower at 210.90 after edging lower $0.47 (-0.22%) today on low volume, notably underperforming the S&P 500 (1.05%). 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 10, 2020):
Friday's trading range has been $4.03 (1.9%), that's below the last trading month's daily average range of $5.55. 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).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 214.89 where further buy stops might get activated. Further selling could move prices lower should the market test June's close-by low at 200.60.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Rockwell Automation. Out of 309 times, ROK closed higher 55.99% 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 58.58% with an average market move of 1.05%.