TROW dominated by bulls lifting the market higher throughout the day
T. Rowe Price Group Inc. (TROW) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, TROW ended Thursday at 101.34 gaining $8.35 (8.98%) on low volume, strongly outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 95.67, the market confirmed its breakout through the prior session high after trading up to $6.36 above it intraday.
Daily Candlestick Chart (TROW as at Mar 26, 2020):
Thursday's trading range has been $8.96 (9.46%), that's slightly above the last trading month's daily average range of $8.42. 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 TROW.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on March 18th, TROW actually lost -5.35% on the following trading day.
Prices are trading close to the key technical resistance level at 103.50 (R1).
Although the stock is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "White Candle" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for T. Rowe. Out of 552 times, TROW closed lower 55.80% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 48.19% with an average market move of -0.06%.