TROW unable to break through key resistance level
T. Rowe Price Group Inc. (TROW) Technical Analysis Report for Dec 04, 2019 | by Techniquant Editorial Team
TROW ended Wednesday at 121.72 gaining $0.93 (0.77%), slightly outperforming the S&P 500 (0.63%). Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (TROW as at Dec 04, 2019):
Wednesday's trading range has been $1.13 (0.93%), that's below the last trading month's daily average range of $1.48. 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 strongly lower than usual for TROW.
T. Rowe managed to close back above the 20-day moving average at 121.37. Unable to break through the key technical resistance level at 122.13 (R1), the market closed below it after spiking up to 122.37 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. When prices bounced off a significant resistance level the last time on November 19th, TROW lost -0.85% on the following trading day.
Though the share is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Among the three 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 T. Rowe. Out of 118 times, TROW closed higher 51.69% 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 57.63% with an average market move of 0.50%.