ROK finds support at 20-day moving average
Rockwell Automation Inc. (ROK) Technical Analysis Report for Jul 28, 2020 | by Techniquant Editorial Team
ROK finished Tuesday at 222.28 tanking $6.72 (-2.93%) on high volume, strongly underperforming the S&P 500 (-0.65%) following today's earnings report. This is the biggest single-day loss in over a month. 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 28, 2020):
ROK reported earnings of $1.27 per share before today's market open. With analysts having expected an EPS of $1.14, Rockwell Automation Inc. beat market expectations by 11.4%. The company's last earnings report was released on April 28, 2020, when Rockwell Automation Inc. reported earnings of $2.43 per share topping market expectations by 32.8%.
Tuesday's trading range has been $8.34 (3.74%), that's far above the last trading month's daily average range of $4.43. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ROK.
Two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Bearish High-Wave Candle which are both known as bearish patterns. The last time a Bearish High-Wave Candle showed up on July 13th, ROK actually gained 3.43% on the following trading day.
After trading as low as 217.21 during the day, the market found support at the 20-day moving average at 218.79.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) below 20" stand out. Its common bullish interpretation has been confirmed for Rockwell Automation. Out of 255 times, ROK closed higher 57.65% 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 62.35% with an average market move of 1.24%.