RWC.AX finds buyers again around 4.87
Reliance Worldwide (RWC.AX) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
RWC.AX ended Wednesday at 4.89 losing $0.03 (-0.61%), slightly underperforming the ASX 200 (-0.25%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (RWC.AX as at Feb 13, 2019):
Wednesday's trading range has been $0.12 (2.42%), that's below the last trading month's daily average range of $0.16. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for RWC.AX. Prices continued to consolidate within a tight trading range between 4.84 and 4.99 where it has been caught now for the last three trading days.
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 January 17th, RWC.AX actually gained 2.34% on the following trading day. In spite of a strong opening Reliance Worldwide closed below the prior day's open and close, forming a bearish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical resistance level at 4.93 (R1). After having been unable to move lower than 4.88 in the previous session, the stock found buyers again around the same price level today at 4.87.
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 nearby swing high at 4.99 where further buy stops could get activated. Selling might speed up should prices move below the close-by swing low at 4.82 where further sell stops could get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Reliance Worldwide. Out of 192 times, RWC.AX closed higher 51.04% 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 57.81% with an average market move of 1.45%.