RP closes within prior day's range
RealPage Inc. (RP) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
RP ended the month -3.08% lower at 63.01 after edging higher $0.15 (0.24%) today on high volume, underperforming the S&P 500 (0.77%) following Thursday's earnings report. The bears were in full control today, moving the market lower throughout the whole session. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (RP as at Jul 31, 2020):
RP reported earnings of $0.49 per share after Thursday's market close. With analysts having expected an EPS of $0.39, RealPage Inc. beat market expectations by 25.6%. The company's last earnings report was released on May 6, 2020, when RealPage Inc. reported earnings of $0.43 per share surpassing market expectations by 2.4%.
Friday's trading range has been $3.85 (5.8%), that's far above the last trading month's daily average range of $1.97. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for RP.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on Tuesday, RP actually gained 1.79% on the following trading day.
Prices are trading close to the key technical support level at 62.36 (S1).
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Selling could accelerate should prices move below the close-by swing low at 61.85 where further sell stops might get activated. Trading close to May's low at 59.59 we could see further downside momentum if potential sell stops at the level get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for RealPage. Out of 476 times, RP closed higher 53.36% 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 58.19% with an average market move of 1.06%.