TROW surges, gaining $3.63 (2.7%) within a single day on high volume
T. Rowe Price Group Inc. (TROW) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
TROW ended the month 11.82% higher at 138.10 after surging $3.63 (2.7%) today on high volume, significantly outperforming the S&P 500 (0.77%). This is the biggest single-day gain in over three weeks. Today's close at 138.10 marks the highest recorded closing price since February 19th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 135.17, the share confirmed its breakout through the prior session high after trading up to $3.07 above it intraday.
Daily Candlestick Chart (TROW as at Jul 31, 2020):
Friday's trading range has been $4.94 (3.68%), that's far above the last trading month's daily average range of $2.82. 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 slightly higher than usual for TROW.
One bullish candlestick pattern matches today's price action, the White Candle.
Unable to break through the key technical resistance level at 138.17 (R1), the stock closed below it after spiking up to 138.24 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. When prices bounced off a significant resistance level the last time on July 8th, TROW lost -1.12% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 139.82, upside momentum could accelerate should T. Rowe be able to break out to new highs for the year.
Among the nine 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 548 times, TROW closed lower 54.74% 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 nine trading days, showing a win rate of 48.54% with an average market move of -0.03%.