RY rises to highest close since December 2, 2019
Royal Bank Of Canada (RY) Technical Analysis Report for Jan 15, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, RY ended Wednesday at 80.71 gaining $0.25 (0.31%) on high volume, slightly outperforming the S&P 500 (0.19%). Today's close at 80.71 marks the highest recorded closing price since December 2, 2019. Trading up to $0.20 lower after the open, Royal Bank managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Monday, RY gained 0.29% on the following trading day. Closing above Tuesday's high at 80.63, the stock confirmed its breakout through the prior session high after trading up to $0.17 above it intraday.
Daily Candlestick Chart (RY as at Jan 15, 2020):
Wednesday's trading range has been $0.50 (0.62%), that's slightly below the last trading month's daily average range of $0.55. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for RY.
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 though could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 79.47.
The share shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close above the upper Bollinger Band" stand out. Its common bullish interpretation has been confirmed for Royal Bank. Out of 162 times, RY closed higher 55.56% 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 58.02% with an average market move of 0.50%.