RY climbs to highest close since November 29, 2019
Royal Bank Of Canada (RY) Technical Analysis Report for Jan 23, 2020 | by Techniquant Editorial Team
RY ended Thursday at 81.73 surging $0.46 (0.57%), slightly outperforming the S&P 500 (0.11%). Today's close at 81.73 marks the highest recorded closing price since November 29, 2019. The bulls were in full control today, moving the market higher throughout the whole session. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (RY as at Jan 23, 2020):
Thursday's trading range has been $0.92 (1.14%), that's far above the last trading month's daily average range of $0.55. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for RY.
Two candlestick patterns are matching today's price action, the Bullish Closing Marubozu and the White Candle which are both known as bullish patterns. The last time a Bullish Closing Marubozu showed up on April 26, 2019, RY gained 0.74% on the following trading day.
Buyers managed to take out the key technical resistance level at 81.55 (now S1), which is likely to act as support going forward. Prices are trading close to the key technical resistance level at 82.08 (R1).
The market 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 nearby swing high at 82.08 where further buy stops could get triggered. 2019's high at 82.58 is within reach and we might see further upside momentum should the stock manage to break out beyond.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Closing Marubozu" stand out. Its common bullish interpretation has been confirmed for Royal Bank. Out of 7 times, RY closed higher 71.43% 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 85.71% with an average market move of 2.88%.