ROP finds buyers at key support level
Roper Technologies Inc. (ROP) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, ROP finished Thursday at 306.32 gaining $21.14 (7.41%), strongly outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 296.90, Roper Technologies confirmed its breakout through the previous session high after trading up to $9.42 above it intraday.
Daily Candlestick Chart (ROP as at Mar 26, 2020):
Thursday's trading range has been $18.29 (6.23%), that's slightly below the last trading month's daily average range of $23.69. 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 significantly higher than usual for ROP.
One bullish candlestick pattern matches today's price action, the White Candle.
After trading down to 288.03 earlier during the day, the share bounced off the key technical support level at 290.48 (S1). The failure to close below the support might increase that levels significance as support going forward. Prices are trading close to the key technical resistance level at 309.44 (R1).
While the stock is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish. With its 50-day moving average crossing below its 200-day moving average, the market has entered a so-called "Death Cross" for the first time since January 21st. Showing increasing downward momentum in the short and medium-term the "Death Cross" is known to indicate a potential bear market on the horizon. When the last "Death Cross" happened on November 12, 2019, ROP actually gained 1.55% on the following trading day.
Buying might accelerate should prices move above the nearby swing high at 309.44 where further buy stops could get triggered.
Among the 10 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 Roper Technologies. Out of 450 times, ROP closed higher 60.22% 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 56.00% with an average market move of 0.52%.