RRC breaks above 20-day moving average for the first time since August 25th
Range Resources Corporation (RRC) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, RRC ended Wednesday at 7.83 gaining $0.45 (6.1%), notably outperforming the S&P 500 (-0.46%).
Daily Candlestick Chart (RRC as at Sep 16, 2020):
Wednesday's trading range has been $0.62 (8.31%), that's far above the last trading month's daily average range of $0.45. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for RRC.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern.
The stock managed to close above the 20-day moving average at 7.55 for the first time since August 25th. When this moving average was crossed above the last time on August 3rd, RRC gained 6.52% on the following trading day. Unable to break through the key technical resistance level at 8.01 (R1), the share closed below it after spiking up to 8.01 earlier during the day. The failure to close above the resistance could increase that levels importance going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Range Resources. Out of 155 times, RRC closed lower 60.65% 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 56.13% with an average market move of -0.36%.