ROK finds buyers again around 214.50
Rockwell Automation Inc. (ROK) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, ROK ended the month 2.41% higher at 218.14 after losing $1.70 (-0.77%) today, notably underperforming the S&P 500 (0.77%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (ROK as at Jul 31, 2020):
Friday's trading range has been $5.48 (2.5%), that's slightly above the last trading month's daily average range of $4.60. Weekly volatility is also higher, being 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 Takuri Line.
After trading down to 214.50 earlier during the day, the stock bounced off the key technical support level at 214.63 (S1). The failure to close below the support might increase that levels importance as support going forward. Rockwell Automation closed below the 20-day moving average at 220.02 for the first time since July 2nd. After having been unable to move lower than 215.03 in the prior session, the market found buyers again around the same price level today at 214.50. The last time this happened on Monday, ROK actually lost -2.93% on the following trading day.
Although the share is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Rockwell Automation. Out of 402 times, ROK closed higher 60.95% 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 53.48% with an average market move of 0.59%.