HEATOIL finds support at 50-day moving average
Heating Oil (HEATOIL) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, HEATOIL ended the week 5.85% higher at 1.0220 after edging lower $0.0088 (-0.85%) today on low volume. Closing below Thursday's low at 1.0247, the contract confirmed its breakout through the prior session low after trading up to $0.0497 below it intraday.
Daily Candlestick Chart (HEATOIL as at May 22, 2020):
Friday's trading range has been $0.0595 (5.79%), that's below the last trading month's daily average range of $0.0713. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for HEATOIL.
Three candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and two bearish patterns, the Bearish Spinning Top and the Hanging Man. The last time a Bullish Hikkake Pattern showed up on May 4th, HEATOIL gained 9.11% on the following trading day.
After trading as low as 0.9750 during the day, the market found support at the 50-day moving average at 1.0040. Prices are trading close to the key technical resistance level at 1.0574 (R1).
While HEATOIL is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might accelerate should prices move above the nearby swing high at 1.0678 where further buy stops could get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 50" stand out. Its common bullish interpretation has been confirmed for Heating Oil. Out of 31 times, HEATOIL closed higher 58.06% 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 74.19% with an average market move of 1.58%.
With three out of the other four Energy Markets closing lower today, the ones that stand out on the negative side are GASOLINE losing -1.51% and CRUDE closing -1.03% lower. On the flipside the best performer has been NATGAS closing 1.5% higher. Read more