RSG pops to highest close since June 9th
Republic Services Inc. (RSG) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, RSG finished the month 6.34% higher at 87.25 after gaining $0.19 (0.22%) today, underperforming the S&P 500 (0.77%). Today's close at 87.25 marks the highest recorded closing price since June 9th. 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 Jul 31, 2020):
Friday's trading range has been $1.30 (1.5%), that's slightly below the last trading month's daily average range of $1.43. 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. Prices continued to consolidate within a tight trading range between 85.63 and 87.38 where it has been caught now for the last three trading days.
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, two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern.
Buyers managed to take out the key technical resistance level at 87.07 (now S1), which is likely to act as support going forward. After having been unable to move above 87.38 in the prior session, the stock ran into sellers again around the same price level today, missing to move higher than 87.27. The last time this happened on July 22nd, RSG actually gained 0.22% on the following trading day.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might accelerate should prices move above the close-by swing high at 87.38 where further buy stops could get activated. Selling might speed up should prices move below the nearby swing low at 85.63 where further sell stops could get triggered.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Up Close near high of period" stand out. Its common bullish interpretation has been confirmed for Republic Services. Out of 589 times, RSG closed higher 54.50% 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 60.27% with an average market move of 0.42%.