RTN closes above its opening price after recovering from early selling pressure
Raytheon Company (RTN) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
RTN finished the week -1.49% lower at 227.18 after gaining $0.42 (0.19%) today on low volume, slightly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading up to $1.36 lower after the open, the market 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 missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (RTN as at Feb 14, 2020):
Friday's trading range has been $2.36 (1.04%), that's far below the last trading month's daily average range of $4.10. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for RTN.
Two candlestick patterns are matching today's price action, the Hammer which is known as bullish pattern and one bearish pattern, the Thrusting Pattern. The last time a Thrusting Pattern showed up on December 6, 2018, RTN lost -1.83% on the following trading day.
Prices are trading close to the key technical resistance level at 229.32 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 233.48, upside momentum might accelerate should the stock be able to break out to new highs for the year.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hammer" stand out. Its common bullish interpretation has been confirmed for Raytheon. Out of 32 times, RTN closed higher 59.38% 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 62.50% with an average market move of 0.43%.