RY finds support at 20-day moving average
Royal Bank Of Canada (RY) Technical Analysis Report for Jan 03, 2020 | by Techniquant Editorial Team
RY finished the week 0.44% higher at 79.42 after losing $0.28 (-0.35%) today, but still slightly outperforming the S&P 500 (-0.71%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (RY as at Jan 03, 2020):
Friday's trading range has been $0.63 (0.8%), that's slightly above the last trading month's daily average range of $0.59. 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 strongly lower than usual for RY.
After trading as low as 79.03 during the day, the market found support at the 20-day moving average at 79.11. The last time this happened on October 30, 2019, RY actually lost -0.36% on the following trading day.
The share shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying might speed up should prices move above the close-by swing high at 79.78 where further buy stops could get activated.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Royal Bank. Out of 762 times, RY closed higher 52.49% 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 55.38% with an average market move of 0.13%.