RY closes higher for the 3rd day in a row
Royal Bank Of Canada (RY) Technical Analysis Report for Jan 14, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, RY finished Tuesday at 80.46 gaining $0.23 (0.29%) on high volume, slightly outperforming the S&P 500 (-0.15%). Today's close at 80.46 marks the highest recorded closing price since December 3, 2019. Closing above Monday's high at 80.24, Royal Bank confirmed its breakout through the prior session high after trading up to $0.39 above it intraday.
Daily Candlestick Chart (RY as at Jan 14, 2020):
Tuesday's trading range has been $0.57 (0.71%), that's slightly above the last trading month's daily average range of $0.55. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for RY.
The market managed to close above the 50-day moving average at 80.44 for the first time since December 2, 2019. When this moving average was crossed above the last time on September 10, 2019, RY gained 0.53% on the following trading day. Prices are trading close to the key technical resistance level at 80.88 (R1).
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day although might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 79.42.
The stock shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 50" stand out. Its common bullish interpretation has been confirmed for Royal Bank. Out of 76 times, RY closed higher 61.84% 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 60.53% with an average market move of -0.05%.