ROST closes above its opening price after recovering from early selling pressure
Ross Stores Inc. (ROST) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, ROST ended the month 5.2% higher at 89.67 after gaining $0.72 (0.81%) today, underperforming the Nasdaq 100 (1.78%). Today's close at 89.67 marks the highest recorded closing price since July 6th. Trading up to $0.69 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 89.30, the stock confirmed its breakout through the previous session high after trading up to $0.48 above it intraday.
Daily Candlestick Chart (ROST as at Jul 31, 2020):
Friday's trading range has been $1.85 (2.09%), that's far below the last trading month's daily average range of $2.64. Weekly volatility is also lower, being 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 Short Candle and the White Candle which are both known as bullish patterns. The last time a Bullish Short Candle showed up on Tuesday, ROST gained 2.97% on the following trading day.
Prices are trading close to the key technical resistance level at 91.36 (R1).
While Ross Stores is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
As prices are trading close to July's high at 91.12, upside momentum could accelerate should the share mark new highs for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bullish Intraday Reversal" stand out. Its common bullish interpretation has been confirmed for Ross Stores. Out of 474 times, ROST closed higher 50.84% 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 59.07% with an average market move of 0.67%.