RY soars, gaining $1.35 (1.71%) within a single day
Royal Bank Of Canada (RY) Technical Analysis Report for Feb 04, 2020 | by Techniquant Editorial Team
RY finished Tuesday at 80.13 surging $1.35 (1.71%), slightly outperforming the S&P 500 (1.5%). This is the biggest single-day gain in over seven months. The bulls were in full control today, moving the market higher throughout the whole session. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (RY as at Feb 04, 2020):
Tuesday's trading range has been $0.63 (0.79%), that's slightly below the last trading month's daily average range of $0.65. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly 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. The last time a White Candle showed up on January 30th, RY actually lost -1.42% on the following trading day.
Royal Bank managed to close back above the 200-day moving average at 79.14. Prices are trading close to the key technical resistance level at 80.21 (R1).
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Buying could accelerate should prices move above the nearby swing high at 80.50 where further buy stops might get triggered.
Among the 11 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 78 times, RY closed higher 61.54% 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 58.97% with an average market move of -0.05%.