ROST fails to close above 100-day moving average
Ross Stores Inc. (ROST) Technical Analysis Report for Jun 01, 2020 | by Techniquant Editorial Team
ROST finished Monday at 97.20 gaining $0.24 (0.25%), slightly underperforming the Nasdaq 100 (0.45%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (ROST as at Jun 01, 2020):
Monday's trading range has been $2.62 (2.7%), that's below the last trading month's daily average range of $3.45. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ROST.
Four candlestick patterns are matching today's price action, the Bearish Hikkake Pattern, the Northern Doji and the Shooting Star which are known as bearish patterns and one neutral pattern, the Doji. The last time a Doji showed up on May 20th, ROST gained 6.58% on the following trading day.
After spiking up to 99.11 during the day, the market found resistance at the 100-day moving average at 98.88. After having been unable to move above 98.87 in the previous session, the share ran into sellers again around the same price level today, failing to move higher than 99.11.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could speed up should prices move above the nearby swing high at 100.60 where further buy stops might get activated. Selling could accelerate should prices move below the close-by swing low at 93.80 where further sell stops might get triggered. Trading close to April's high at 101.08 we could see further upside momentum if potential buy stops at the level get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Ross Stores. Out of 778 times, ROST closed higher 54.11% 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 63.37% with an average market move of 1.08%.