RSG closes within previous day's range
Republic Services Inc (RSG) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
RSG finished the week -2.13% lower at 70.63 after gaining $0.53 (0.76%) today on high volume, underperforming the S&P 500 (1.42%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (RSG as at Oct 12, 2018):
Friday's trading range has been $0.70 (0.99%), that's slightly below the last trading month's daily average range of $0.77. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for RSG.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, four candlestick patterns are matching today's price action, the Bullish Harami Cross Pattern, the Homing Pigeon and the Southern Doji which are known as bullish patterns and one neutral pattern, the Doji. The last time a Southern Doji showed up on July 17th, RSG actually lost -1.23% on the following trading day.
Prices are trading close to the key technical support level at 69.91 (S1). After having been unable to move lower than 70.08 in the prior session, Republic Services found buyers again around the same price level today at 70.18.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and might now be heading back up towards the mean of the Bollinger Bands at 72.90.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Selling could accelerate should prices move below the nearby swing low at 70.08 where further sell stops might get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Homing Pigeon" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Republic Services. Out of 17 times, RSG closed lower 58.82% 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 two trading days, showing a win rate of 64.71% with an average market move of -0.34%.