RRC pushes through Tuesday's high
Range Resources Corporation (RRC) Technical Analysis Report for Dec 04, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, RRC finished Wednesday at 3.59 gaining $0.19 (5.59%), notably outperforming the S&P 500 (0.63%). Closing above Tuesday's high at 3.47, the share confirmed its breakout through the previous session high after trading up to $0.16 above it intraday.
Daily Candlestick Chart (RRC as at Dec 04, 2019):
Wednesday's trading range has been $0.28 (8.21%), that's slightly above the last trading month's daily average range of $0.28. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for RRC. Prices continued to consolidate within a tight trading range between 3.30 and 3.70 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on November 27th, RRC actually lost -4.12% on the following trading day.
Prices are trading close to the key technical resistance level at 3.74 (R1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 3.65 where further buy stops could get triggered. Selling might accelerate should prices move below the close-by swing low at 3.30 where further sell stops could get activated. With prices trading close to this year's low at 3.26, downside momentum might speed up should the market break out to new lows for the year.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed above last periods high" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Range Resources. Out of 426 times, RRC closed lower 59.39% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 59.62% with an average market move of -1.42%.