RSG still stuck within tight trading range
Republic Services Inc. (RSG) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
RSG finished the week 2.08% higher at 81.12 after gaining $0.31 (0.38%) today on low volume, slightly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading up to $0.65 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (RSG as at May 22, 2020):
Friday's trading range has been $0.76 (0.94%), that's far below the last trading month's daily average range of $2.01. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for RSG. Prices continued to consolidate within a tight trading range between 80.44 and 82.83 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the Northern Doji which is known as bearish pattern and one neutral pattern, the Doji.
After trading down to 80.44 earlier during the day, Republic Services bounced off the key technical support level at 80.58 (S1). The failure to close below the support could increase that levels significance as support going forward. When prices bounced off a significant support level the last time on April 24th, RSG gained 3.31% on the following trading day. After having been unable to move lower than 80.57 in the prior session, the market found buyers again around the same price level today at 80.44.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might speed up should prices move above the close-by swing high at 82.65 where further buy stops could get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Republic Services. Out of 509 times, RSG closed higher 56.58% 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 58.15% with an average market move of 0.36%.