RY closes higher for the 7th day in a row
Royal Bank Of Canada (RY) Technical Analysis Report for Jan 21, 2020 | by Techniquant Editorial Team
Moving higher for the 7th day in a row, RY finished Tuesday at 81.67 gaining $0.15 (0.18%), slightly outperforming the S&P 500 (-0.27%). Today's close at 81.67 marks the highest recorded closing price since November 29, 2019. The bears were in full control today, moving the market lower throughout the whole session. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (RY as at Jan 21, 2020):
Tuesday's trading range has been $0.49 (0.6%), that's slightly below the last trading month's daily average range of $0.53. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for RY.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on December 30, 2019, RY actually gained 0.27% on the following trading day.
Prices are trading close to the key technical support level at 81.55 (S1).
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 while might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 79.81.
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 the market manage to break out beyond.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "7 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Royal Bank. Out of 13 times, RY closed higher 84.62% 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 61.54% with an average market move of 0.54%.