RRC closes lower for the 2nd day in a row
Range Resources Corporation (RRC) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, RRC ended Thursday at 2.31 losing $0.21 (-8.33%), notably underperforming the S&P 500 (6.24%). Closing below Wednesday's low at 2.50, the stock confirmed its breakout through the prior session low after trading up to $0.41 below it intraday.
Daily Candlestick Chart (RRC as at Mar 26, 2020):
Thursday's trading range has been $0.56 (21.37%), that's slightly below the last trading month's daily average range of $0.58. 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 RRC.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Black Candle.
After trading down to 2.09 earlier during the day, the market bounced off the key technical support level at 2.14 (S1). The failure to close below the support might increase that levels significance as support going forward. When prices bounced off a significant support level the last time on Tuesday, RRC actually lost -17.38% on the following trading day.
Though the share is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
With prices trading close to this year's low at 1.61, downside momentum might accelerate should Range Resources break out to new lows for the year.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) below 20" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Range Resources. Out of 286 times, RRC closed lower 52.45% 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 52.80% with an average market move of -0.91%.