ROK closes above its opening price after recovering from early selling pressure
Rockwell Automation Inc. (ROK) Technical Analysis Report for Aug 12, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, ROK ended Wednesday at 236.12 gaining $3.94 (1.7%), slightly outperforming the S&P 500 (1.4%). Today's close at 236.12 marks the highest recorded closing price ever. Trading up to $1.98 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on August 7th, ROK gained 2.54% on the following trading day. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (ROK as at Aug 12, 2020):
Wednesday's trading range has been $5.46 (2.33%), that's slightly above the last trading month's daily average range of $4.83. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ROK.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
Prices are trading close to the key technical resistance level at 238.49 (R1).
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 while might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 224.76.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 238.49 where further buy stops could get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(14) above 70" stand out. Its common bearish interpretation has been confirmed for Rockwell Automation. Out of 47 times, ROK closed lower 55.32% 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 nine trading days, showing a win rate of 59.57% with an average market move of -0.32%.