ROST loses $2.99 (-3.09%) after posting weak earnings

Ross Stores Inc. (ROST) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team


ROST loses $2.99 (-3.09%) after posting weak earnings
ROST finds buyers at key support level
ROST closes within previous day's range


ROST ended the week 10.05% higher at 93.88 after losing $2.99 (-3.09%) today on high volume, notably underperforming the Nasdaq 100 (0.38%) following Thursday's earnings report. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.

Daily Candlestick Chart (ROST as at May 22, 2020):

Daily technical analysis candlestick chart for Ross Stores Inc. (ROST) as at May 22, 2020

ROST reported earnings of $-0.29 per share after Thursday's market close. With analysts having expected an EPS of $-0.01, Ross Stores Inc. missed market expectations by -2,800.0%. The company's last earnings report was released on March 3, 2020, when Ross Stores Inc. reported earnings of $1.28 per share surpassing market expectations by 0.8%.

Friday's trading range has been $4.82 (5.18%), that's above the last trading month's daily average range of $3.78. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ROST.

Two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Shooting Star. The last time a Shooting Star showed up on April 28th, ROST actually gained 4.87% on the following trading day.

After trading down to 91.87 earlier during the day, the market bounced off the key technical support level at 92.02 (S1). The failure to close below the support could increase that levels significance as support going forward.

Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and might now be heading back down towards the mean of the Bollinger Bands at 90.06.

Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.

Further buying could move prices higher should the market test April's nearby high at 101.08.

Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Ross Stores. Out of 459 times, ROST closed higher 58.17% 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 62.96% with an average market move of 1.06%.

Market Conditions for ROST as at May 22, 2020

Loading Market Conditions for ROST (Ross Stores Inc.)...
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