RRC closes below its opening price unable to hold early session gains
Range Resources Corporation (RRC) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
RRC ended the week -3.44% lower at 3.09 after edging lower $0.01 (-0.32%) today, slightly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading $0.21 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on February 4th, RRC actually gained 10.60% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (RRC as at Feb 14, 2020):
Friday's trading range has been $0.30 (9.65%), that's above the last trading month's daily average range of $0.23. Things look different on the weekly timeframe, where the market's trading range of the last week has been way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for RRC.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar. After spiking up to 3.32 during the day, the market has been sold off at those price levels and formed a bearish Pin Bar closing $0.23 below today's high. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Prices are trading close to the key technical support level at 3.00 (S1). After spiking up to 3.32 during the day, Range Resources found resistance at the 20-day moving average at 3.20. The stock found buyers again today around 3.02 for the third trading day in a row after having found demand at 3.04 in the prior session and at 3.00 two days ago.
Although RRC is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might speed up should prices move above the close-by swing high at 3.32 where further buy stops could get triggered. Selling might accelerate should prices move below the nearby swing low at 2.90 where further sell stops could get activated. With prices trading close to this year's low at 2.85, downside momentum might speed up should the share break out to new lows for the year.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Pin Bar" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Range Resources. Out of 8 times, RRC closed higher 62.50% 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 62.50% with an average market move of 1.59%.