RY finds buyers again around 80.28
Royal Bank Of Canada (RY) Technical Analysis Report for Feb 10, 2020 | by Techniquant Editorial Team
RY finished Monday at 80.66 edging higher $0.01 (0.01%) on low volume, underperforming the S&P 500 (0.73%). Trading up to $0.18 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (RY as at Feb 10, 2020):
Monday's trading range has been $0.42 (0.52%), that's far below the last trading month's daily average range of $0.62. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for RY. Prices continued to consolidate within a tight trading range between 80.28 and 80.95 where it has been caught now for the last three trading days.
One bearish candlestick pattern matches today's price action, the Last Engulfing Top Pattern.
Prices are trading close to the key technical support level at 80.21 (S1). Prices are trading close to the key technical resistance level at 80.95 (R1). After having been unable to move lower than 80.37 in the previous session, the share found buyers again around the same price level today at 80.28. The last time this happened on February 3rd, RY gained 1.71% on the following trading day.
Royal Bank shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying might accelerate should prices move above the nearby swing high at 80.95 where further buy stops could get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Top Pattern" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Royal Bank. Out of 68 times, RY closed higher 58.82% 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 52.94% with an average market move of -0.06%.