ROST closes within prior day's range after lackluster session
Ross Stores Inc. (ROST) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
ROST finished the month -12.09% lower at 85.24 after flat today on high volume, strongly underperforming the Nasdaq 100 (1.96%). Trading up to $1.23 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (ROST as at Jun 30, 2020):
Tuesday's trading range has been $1.96 (2.31%), that's far below the last trading month's daily average range of $3.22. 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.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Prices are trading close to the key technical resistance level at 85.98 (R1). After having been unable to move above 85.52 in the previous session, Ross Stores ran into sellers again around the same price level today, failing to move higher than 85.74. The last time this happened on June 26th, ROST actually gained 1.78% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could speed up should prices move below the nearby swing low at 81.61 where further sell stops might get triggered. Further selling could move prices lower should the market test May's close-by low at 79.86.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Ross Stores. Out of 626 times, ROST closed higher 54.95% 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 60.70% with an average market move of 0.89%.