ROP finds buyers again around 398.77
Roper Technologies Inc. (ROP) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
ROP ended Wednesday at 400.43 losing $3.46 (-0.86%), slightly underperforming the S&P 500 (-0.46%). The bears were in full control today, moving the market lower throughout the whole session. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (ROP as at Sep 16, 2020):
Wednesday's trading range has been $11.02 (2.7%), that's slightly above the last trading month's daily average range of $9.40. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ROP. Prices continued to consolidate within a tight trading range between 393.21 and 409.79 where it has been caught now for the whole last trading week.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on Monday, ROP actually gained 1.93% on the following trading day.
Prices are trading close to the key technical support level at 395.00 (S1). Prices are trading close to the key technical resistance level at 405.67 (R1). After having been unable to move lower than 397.03 in the prior session, Roper Technologies found buyers again around the same price level today at 398.77.
While the share is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Selling could accelerate should prices move below the close-by swing low at 393.21 where further sell stops might get activated. Trading close to July's low at 386.17 we could see further downside momentum if potential sell stops at the level get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Down Move" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Roper Technologies. Out of 262 times, ROP closed higher 58.78% 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 61.45% with an average market move of 1.27%.