ROST closes higher for the 4th day in a row
Ross Stores Inc. (ROST) Technical Analysis Report for May 17, 2019 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, ROST ended the week -0.3% lower at 97.20 after gaining $1.32 (1.38%) today, significantly outperforming the Nasdaq 100 (-1.01%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 97.00, Ross Stores confirmed its breakout through the prior session high after trading up to $0.39 above it intraday.
Daily Candlestick Chart (ROST as at May 17, 2019):
Friday's trading range has been $1.99 (2.09%), that's slightly above the last trading month's daily average range of $1.90. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ROST.
One bullish candlestick pattern matches today's price action, the White Candle.
The share managed to close above the 20-day moving average at 96.80 for the first time since April 29th. Unable to break through the key technical resistance level at 97.34 (R1), the market closed below it after spiking up to 97.39 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. When prices bounced off a significant resistance level the last time on Wednesday, ROST actually gained 1.46% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 98.11 where further buy stops could get activated. With prices trading close to this year's high at 100.77, upside momentum might speed up should the stock be able to break out to new highs for the year.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Ross Stores. Out of 787 times, ROST closed higher 53.75% 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 63.15% with an average market move of 1.09%.