RY soars, gaining $0.72 (0.89%) within a single day
Royal Bank Of Canada (RY) Technical Analysis Report for Jan 16, 2020 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, RY finished Thursday at 81.43 surging $0.72 (0.89%), slightly outperforming the S&P 500 (0.84%). This is the biggest single-day gain in over two months. The last time we've seen such an unusually strong single-day gain on June 18, 2019, RY gained 0.57% on the following trading day. Today's close at 81.43 marks the highest recorded closing price since November 29, 2019.
Daily Candlestick Chart (RY as at Jan 16, 2020):
Thursday's trading range has been $0.80 (0.99%), that's far above the last trading month's daily average range of $0.55. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for RY.
One bullish candlestick pattern matches today's price action, the White Candle.
After trading down to 80.88 earlier during the day, the share bounced off the key technical support level at 80.88 (S1). The failure to close below the support might increase that levels significance as support going forward. Unable to break through the key technical resistance level at 81.55 (R1), the market closed below it after spiking up to 81.68 earlier during the day. The failure to close above the resistance could increase that levels importance going forward.
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 79.56.
The stock shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
2019's high at 82.58 is within reach and we might see further upside momentum should Royal Bank manage to break out beyond. Further buying could move prices higher should the market test December's nearby high at 81.89.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Gap Up" stand out. Its common bullish interpretation has been confirmed for Royal Bank. Out of 183 times, RY closed higher 54.64% 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 60.11% with an average market move of 0.37%.