RY closes below its opening price unable to hold early session gains
Royal Bank Of Canada (RY) Technical Analysis Report for Jul 16, 2019 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, RY ended Tuesday at 79.88 losing $0.01 (-0.01%), but still slightly outperforming the S&P 500 (-0.34%). Trading $0.24 higher after the open, the stock 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.
Daily Candlestick Chart (RY as at Jul 16, 2019):
Tuesday's trading range has been $0.58 (0.72%), that's slightly below the last trading month's daily average range of $0.62. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for RY.
One bullish candlestick pattern matches today's price action, the Last Engulfing Bottom Pattern. The last time a Last Engulfing Bottom Pattern showed up on May 28th, RY actually lost -1.09% on the following trading day.
Prices are trading close to the key technical support level at 79.78 (S1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could speed up should prices move below the close-by swing low at 79.62 where further sell stops might get triggered. As prices are trading close to July's low at 79.51, downside momentum could accelerate should the market mark new lows for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Bottom Pattern" stand out. Its common bullish interpretation has been confirmed for Royal Bank. Out of 46 times, RY closed higher 63.04% 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 63.04% with an average market move of 0.74%.