RTN closes lower for the 2nd day in a row
Raytheon Company (RTN) Technical Analysis Report for Apr 16, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, RTN finished Tuesday at 182.36 losing $0.40 (-0.22%), slightly underperforming the S&P 500 (0.05%). Trading $1.19 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 within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (RTN as at Apr 16, 2019):
Tuesday's trading range has been $1.75 (0.96%), that's below the last trading month's daily average range of $2.79. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for RTN. Prices continued to consolidate within a tight trading range between 182.11 and 184.72 where it has been caught now for the last three trading days.
One bullish candlestick pattern matches today's price action, the Bullish Hikkake Pattern. The last time a Bullish Hikkake Pattern showed up on April 10th, RTN gained 1.60% on the following trading day.
Prices broke below the key technical support level at 182.42 (now R1), which is likely to act as resistance going forward. The stock found buyers again today around 182.28 for the third trading day in a row after having found demand at 182.32 in the previous session and at 182.11 two days ago.
While the share is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might speed up should prices move above the close-by swing high at 184.72 where further buy stops could get triggered. With prices trading close to this year's high at 188.34, upside momentum might accelerate should Raytheon be able to break out to new highs for the year.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Raytheon. Out of 413 times, RTN closed higher 60.53% 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 64.41% with an average market move of 1.07%.