RRC unable to break through key resistance level
Range Resources Corporation (RRC) Technical Analysis Report for Jul 02, 2020 | by Techniquant Editorial Team
RRC finished Thursday at 6.12 gaining $0.50 (8.9%), strongly outperforming the S&P 500 (0.45%) ahead of tomorrow's Independence Day OBS market holiday. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 5.71, the market confirmed its breakout through the previous session high after trading up to $0.45 above it intraday.
Daily Candlestick Chart (RRC as at Jul 02, 2020):
Thursday's trading range has been $0.47 (8.25%), that's slightly below the last trading month's daily average range of $0.57. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for RRC.
One bullish candlestick pattern matches today's price action, the White Candle.
Range Resources managed to close back above the 50-day moving average at 6.06 for the first time since June 22nd. Unable to break through the key technical resistance level at 6.13 (R1), the share closed below it after spiking up to 6.16 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. When prices bounced off a significant resistance level the last time on June 18th, RRC lost -6.57% on the following trading day.
While the stock is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 50" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Range Resources. Out of 98 times, RRC closed lower 57.14% 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 64.29% with an average market move of -0.86%.