RSG rallies $1.42 (1.43%) after posting strong earnings
Republic Services Inc. (RSG) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 6th day in a row, RSG ended the week 3.39% higher at 100.43 after surging $1.42 (1.43%) today on high volume, significantly outperforming the S&P 500 (0.18%) following Thursday's earnings report. This is the biggest single-day gain in over two months. The last time we've seen such an unusually strong single-day gain on January 30th, RSG actually lost -0.71% on the following trading day. Today's close at 100.43 marks the highest recorded closing price ever. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 99.35, Republic Services confirmed its breakout through the prior session high after trading up to $1.31 above it intraday.
Daily Candlestick Chart (RSG as at Feb 14, 2020):
RSG reported earnings of $0.91 per share after Thursday's market close. With analysts having expected an EPS of $0.89, Republic Services Inc. beat market expectations by 2.2%. The company's last earnings report was released on Oct. 30, 2019, when Republic Services Inc. reported earnings of $0.91 per share surpassing market expectations by 5.8%.
Friday's trading range has been $1.60 (1.61%), that's far above the last trading month's daily average range of $0.95. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for RSG.
One bullish candlestick pattern matches today's price action, the White Candle.
Crossing above the upper Bollinger Band for the first time since January 22nd, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 96.07 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 13 market conditions that our pattern recognition engine identified today, the statistics for the Stock Earning Report based market condition "Trading Day post strong Earnings Report" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Republic Services. Out of 21 times, RSG closed higher 76.19% 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 61.90% with an average market move of 2.36%.