RSG breaks below key technical support level
Republic Services Inc. (RSG) Technical Analysis Report for Jun 01, 2020 | by Techniquant Editorial Team
RSG ended Monday at 85.05 losing $0.41 (-0.48%) on low volume, underperforming the S&P 500 (0.38%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (RSG as at Jun 01, 2020):
Monday's trading range has been $0.85 (0.99%), that's below the last trading month's daily average range of $1.90. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly 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. In spite of a strong opening the stock closed below the prior day's open and close, forming a bearish Engulfing Candle.
Prices broke below the key technical support level at 85.23 (now R1), which is likely to act as resistance going forward. The last time this happened on May 12th, RSG lost -1.35% on the following trading day.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could speed up should prices move above the nearby swing high at 86.14 where further buy stops might get triggered.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Support S1" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Republic Services. Out of 268 times, RSG closed higher 57.46% 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 63.06% with an average market move of 0.64%.