GOIL closes lower for the 2nd day in a row
Gasoil (GOIL) Technical Analysis Report for Aug 07, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, GOIL ended the week 0.82% higher at 370.50 after losing $6.50 (-1.72%) today. Closing below Thursday's low at 375.75, the contract confirmed its breakout through the previous session low after trading up to $8.00 below it intraday.
Daily Candlestick Chart (GOIL as at Aug 07, 2020):
Friday's trading range has been $10.50 (2.79%), that's exactly the same as the last trading month's daily average range of $10.50. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for GOIL.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Black Candle. The last time a Bullish Hikkake Pattern showed up on July 17th, GOIL gained 1.29% on the following trading day.
The market closed back below the 20-day moving average at 374.36.
While GOIL is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Selling could speed up should prices move below the close-by swing low at 363.00 where further sell stops might get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Support S1" stand out. Its common bearish interpretation has been confirmed for Gasoil. Out of 254 times, GOIL closed lower 53.94% 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 53.15% with an average market move of -0.11%.
With three out of the other four Energy Markets closing lower today, the ones that stand out on the negative side are HEATOIL losing -2.13% and GASOLINE closing -1.62% lower. On the flipside the best performer has been NATGAS closing 3.48% higher. Read more