RRC stuck within tight trading range
Range Resources Corporation (RRC) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
RRC finished the week 22.4% higher at 6.01 after gaining $0.24 (4.16%) today on low volume, strongly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 5.99, the market confirmed its breakout through the prior session high after trading up to $0.04 above it intraday.
Daily Candlestick Chart (RRC as at May 22, 2020):
Friday's trading range has been $0.44 (7.77%), that's below the last trading month's daily average range of $0.55. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for RRC. Prices continued to consolidate within a tight trading range between 5.59 and 6.16 where it has been caught now for the last three trading days.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. The last time this happened on March 12th, RRC gained 36.23% on the following trading day. Additionally, two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern.
After having been unable to move above 5.99 in the previous session, the stock ran into sellers again around the same price level today, failing to move higher than 6.03.
Although the share is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could speed up should prices move above the close-by swing high at 6.22 where further buy stops might get activated. With prices trading close to this year's high at 6.75, upside momentum could accelerate should Range Resources be able to break out to new highs for the year.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Top Pattern" stand out. Its common bearish interpretation has been confirmed for Range Resources. Out of 46 times, RRC closed lower 63.04% 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 63.04% with an average market move of -1.53%.