HEATOIL fails to close above 20-day moving average
Heating Oil (HEATOIL) Technical Analysis Report for Sep 18, 2020 | by Techniquant Editorial Team
HEATOIL finished the week 5.93% higher at 1.1568 after edging lower $0.0034 (-0.29%) today. Trading $0.0103 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on September 4th, HEATOIL lost -1.08% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (HEATOIL as at Sep 18, 2020):
Friday's trading range has been $0.0282 (2.43%), that's below the last trading month's daily average range of $0.0391. 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 HEATOIL.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Prices are trading close to the key technical support level at 1.1409 (S1). After spiking up to 1.1713 during the day, the contract found resistance at the 20-day moving average at 1.1659.
HEATOIL shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Heating Oil. Out of 201 times, HEATOIL closed higher 54.73% 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 56.72% with an average market move of 0.52%.
With two of the other Energy Markets closing higher and two closing lower today, the winners of the day are NATGAS surging 2.65% and GASOLINE gaining 0.96%. On the flipside the worst performers have been GOIL closing -0.94% lower and CRUDE losing -0.17%. Read more