RSG closes below its opening price unable to hold early session gains
Republic Services Inc. (RSG) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
RSG finished Wednesday at 96.39 losing $0.43 (-0.44%), but still slightly outperforming the S&P 500 (-0.46%). Trading $1.00 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Tuesday's low at 96.77, Republic Services confirmed its breakout through the previous session low after trading up to $0.49 below it intraday.
Daily Candlestick Chart (RSG as at Sep 16, 2020):
Wednesday's trading range has been $1.83 (1.88%), that's above the last trading month's daily average range of $1.35. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for RSG.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar. The last time this happened on September 3rd, RSG actually gained 0.03% on the following trading day. In spite of a strong opening the stock closed below the prior day's open and close, forming a bearish Engulfing Candle.
Prices are trading close to the key technical support level at 95.45 (S1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed below last periods low" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Republic Services. Out of 354 times, RSG closed higher 55.37% 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 66.67% with an average market move of 0.96%.