ROST enters Death Cross for the first time since November 1, 2017
Ross Stores Inc. (ROST) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, ROST finished the week 6.88% higher at 91.21 after gaining $0.48 (0.53%) today on low volume, outperforming the Nasdaq 100 (-0.3%). Closing above Thursday's high at 90.82, the share confirmed its breakout through the previous session high after trading up to $1.25 above it intraday.
Daily Candlestick Chart (ROST as at Jan 11, 2019):
Friday's trading range has been $1.69 (1.87%), that's below the last trading month's daily average range of $2.65. 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 slightly higher than usual for ROST.
After spiking up to 92.07 during the day, the market found resistance at the 100-day moving average at 92.07. The last time this happened on May 31, 2018, ROST actually gained 2.32% on the following trading day.
While Ross Stores 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 stock has entered a so-called "Death Cross" for the first time since November 1, 2017. Showing increasing downward momentum in the short and medium-term the "Death Cross" is known to indicate a potential bear market on the horizon.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 100" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Ross Stores. Out of 18 times, ROST closed higher 55.56% of the time on the next trading day after the market condition occurred.