ROP closes above its opening price after recovering from early selling pressure
Roper Technologies Inc. (ROP) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, ROP finished the month 11.38% higher at 432.45 after edging lower $0.35 (-0.08%) today, underperforming the S&P 500 (0.77%). Trading up to $5.16 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (ROP as at Jul 31, 2020):
Friday's trading range has been $7.35 (1.7%), that's slightly below the last trading month's daily average range of $8.31. 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 higher than usual for ROP.
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. Additionally, two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Hanging Man.
After having been unable to move above 434.55 in the prior session, the market ran into sellers again around the same price level today, missing to move higher than 433.58. The last time this happened on July 13th, ROP actually gained 2.70% on the following trading day.
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 close-by swing high at 441.03 where further buy stops could get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Roper Technologies. Out of 287 times, ROP closed higher 58.54% 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 64.81% with an average market move of 1.23%.