ROK breaks below Friday's low
Rockwell Automation Inc. (ROK) Technical Analysis Report for Jul 20, 2020 | by Techniquant Editorial Team
ROK finished Monday at 222.44 losing $2.84 (-1.26%) on low volume, significantly underperforming the S&P 500 (0.84%). Closing below Friday's low at 224.23, the market confirmed its breakout through the prior session low after trading up to $2.81 below it intraday.
Daily Candlestick Chart (ROK as at Jul 20, 2020):
Monday's trading range has been $4.58 (2.04%), that's slightly below the last trading month's daily average range of $4.66. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ROK.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and could now be heading back down towards the mean of the Bollinger Bands at 213.27. The last time this happened on May 28th, ROK lost -0.11% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 227.19 where further buy stops could get activated. With prices trading close to this year's high at 230.71, upside momentum might speed up should the share be able to break out to new highs for the year.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed below the upper Bollinger Band" stand out. Its common bearish interpretation has been confirmed for Rockwell Automation. Out of 84 times, ROK closed lower 59.52% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after seven trading days, showing a win rate of 54.76% with an average market move of 0.05%.