RRC closes above its opening price after recovering from early selling pressure
Range Resources Corporation (RRC) Technical Analysis Report for Aug 05, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, RRC ended Wednesday at 7.79 gaining $0.11 (1.43%), outperforming the S&P 500 (0.64%). Today's close at 7.79 marks the highest recorded closing price since June 8th. Trading up to $0.31 lower after the open, Range Resources managed to reverse during the session as bulls took control ending the day above its opening price. 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 Aug 05, 2020):
Wednesday's trading range has been $0.45 (5.81%), that's slightly above the last trading month's daily average range of $0.43. Weekly volatility is also higher, being way above 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 Spinning Top which is known as bullish pattern and one bearish pattern, the Hanging Man. The last time a Hanging Man showed up on July 31st, RRC actually gained 11.61% on the following trading day.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day while might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 6.64.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 8.25, upside momentum might accelerate should the share be able to break out to new highs for the year.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Range Resources. Out of 142 times, RRC closed lower 61.97% 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 53.52% with an average market move of -0.25%.