ROK ends the day indecisive
Rockwell Automation Inc. (ROK) Technical Analysis Report for Jul 17, 2020 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, ROK ended the week 6.82% higher at 225.28 after gaining $2.00 (0.9%) today, outperforming the S&P 500 (0.28%). Today's close at 225.28 marks the highest recorded closing price since June 8th. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (ROK as at Jul 17, 2020):
Friday's trading range has been $2.96 (1.32%), that's far below the last trading month's daily average range of $4.80. Things look different on the weekly timeframe, where the market's trading range of the last week has been above 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 Bullish Spinning Top. The last time a Bullish Spinning Top showed up on June 22nd, ROK actually lost -0.89% on the following trading day.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day though might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 212.60.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 230.71, upside momentum might speed up should the stock be able to break out to new highs for the year.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "5 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Rockwell Automation. Out of 38 times, ROK closed higher 55.26% 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 57.89% with an average market move of 0.34%.