RRR closes higher for the 7th day in a row
Red Rock Resorts Inc. (RRR) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 7th day in a row, RRR finished the week 42.5% higher at 13.11 after surging $1.00 (8.26%) today, strongly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Today's close at 13.11 marks the highest recorded closing price since March 10th. Closing above Thursday's high at 12.46, the market confirmed its breakout through the prior session high after trading up to $1.29 above it intraday.
Daily Candlestick Chart (RRR as at May 22, 2020):
Friday's trading range has been $1.59 (12.78%), that's far above the last trading month's daily average range of $1.03. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for RRR.
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 10.36.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "7 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Red Rock. Out of 5 times, RRR closed higher 60.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 80.00% with an average market move of 2.95%.