TROW finds buyers again around 126.58
T. Rowe Price Group Inc. (TROW) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
TROW finished Wednesday at 128.18 gaining $1.44 (1.14%) on high volume, significantly outperforming the S&P 500 (-0.46%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (TROW as at Sep 16, 2020):
Wednesday's trading range has been $2.58 (2.03%), that's slightly below the last trading month's daily average range of $2.84. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for TROW. Prices continued to consolidate within a tight trading range between 124.81 and 129.41 where it has been caught now for the whole last trading week.
Prices are trading close to the key technical resistance level at 129.61 (R1). After having been unable to move lower than 126.50 in the prior session, T. Rowe found buyers again around the same price level today at 126.58. The last time this happened on September 11th, TROW gained 1.33% on the following trading day.
Though the stock is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous High" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for T. Rowe. Out of 573 times, TROW closed higher 53.75% 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 nine trading days, showing a win rate of 52.36% with an average market move of 0.16%.