RY closes lower for the 2nd day in a row
Royal Bank Of Canada (RY) Technical Analysis Report for Jul 12, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, RY finished the week -1.03% lower at 80.04 after losing $0.34 (-0.42%) today, underperforming the S&P 500 (0.46%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 80.13, Royal Bank confirmed its breakout through the prior session low after trading up to $0.26 below it intraday.
Daily Candlestick Chart (RY as at Jul 12, 2019):
Friday's trading range has been $0.76 (0.94%), that's above the last trading month's daily average range of $0.63. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for RY.
Regardless of a strong opening the share closed below the previous day's open and close, forming a bearish Engulfing Candle. The last time this candlestick pattern showed up on June 11th, RY lost -1.16% on the following trading day. Additionally, two candlestick patterns are matching today's price action, the Bearish Belt-hold and the Black Candle which are both known as bearish patterns.
After trading down to 79.87 earlier during the day, the stock bounced off the key technical support level at 79.97 (S1). The failure to close below the support could increase that levels importance as support going forward. After having been unable to move above 80.65 in the prior session, the market ran into sellers again around the same price level today, failing to move higher than 80.63.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might speed up should prices move below the close-by swing low at 79.87 where further sell stops could get activated. As prices are trading close to July's low at 79.51, downside momentum might accelerate should RY mark new lows for the month.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Belt-hold" stand out. Its common bearish interpretation has been confirmed for Royal Bank. Out of 14 times, RY closed lower 64.29% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 50.00% with an average market move of -0.98%.