ROP finds buyers around 383.48 for the third day in a row
Roper Technologies Inc. (ROP) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
ROP ended the month -1.41% lower at 388.26 after gaining $2.62 (0.68%) today on high volume, underperforming the S&P 500 (1.54%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (ROP as at Jun 30, 2020):
Tuesday's trading range has been $6.88 (1.79%), that's far below the last trading month's daily average range of $10.82. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for ROP. Prices continued to consolidate within a tight trading range between 382.15 and 393.28 where it has been caught now for the last three trading days.
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 394.95 (R1). The stock found buyers again today around 383.48 for the third trading day in a row after having found demand at 382.15 in the prior session and at 383.76 two days ago. The last time this happened on May 4th, ROP gained 1.40% on the following trading day.
Though Roper Technologies is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Selling might speed up should prices move below the nearby swing low at 382.15 where further sell stops could get activated. With prices trading close to this year's high at 410.41, upside momentum might accelerate should the market be able to break out to new highs for the year. As prices are trading close to June's low at 380.98, downside momentum could speed up should the share mark new lows for the month.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous two Lows" stand out. Its common bullish interpretation has been confirmed for Roper Technologies. Out of 109 times, ROP closed higher 56.88% 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 64.22% with an average market move of 1.06%.