ROP pushes through key technical resistance level
Roper Technologies Inc. (ROP) Technical Analysis Report for Apr 08, 2020 | by Techniquant Editorial Team
ROP finished Wednesday at 318.08 gaining $9.97 (3.24%) on low volume, slightly underperforming the S&P 500 (3.41%). Today's close at 318.08 marks the highest recorded closing price since March 11th. Trading up to $4.84 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on March 25th, ROP gained 7.41% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (ROP as at Apr 08, 2020):
Wednesday's trading range has been $13.85 (4.44%), that's below the last trading month's daily average range of $22.98. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for ROP.
Buyers managed to take out the key technical resistance level at 311.84 (now S1), which is likely to act as support going forward. After having been unable to move lower than 307.03 in the prior session, the market found buyers again around the same price level today at 306.91.
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.
Buying might accelerate should prices move above the nearby swing high at 327.15 where further buy stops could get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous low" stand out. Its common bullish interpretation has been confirmed for Roper Technologies. Out of 545 times, ROP closed higher 53.94% 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 61.83% with an average market move of 0.79%.