RRC closes higher for the 2nd day in a row
Range Resources Corporation (RRC) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, RRC finished the month -6.01% lower at 5.63 after gaining $0.10 (1.81%) today, slightly outperforming the S&P 500 (1.54%). Trading up to $0.27 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on April 28th, RRC gained 9.43% on the following trading day. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (RRC as at Jun 30, 2020):
Tuesday's trading range has been $0.37 (6.68%), that's below the last trading month's daily average range of $0.57. Weekly volatility is also lower, being way 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 Takuri Line which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern.
After having been unable to move lower than 5.24 in the prior session, the market found buyers again around the same price level today at 5.27.
Although Range Resources is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Further selling could move prices lower should the market test May's nearby low at 4.89.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Range Resources. Out of 291 times, RRC closed lower 50.86% 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 57.73% with an average market move of -1.14%.