XOP closes lower for the 2nd day in a row
SPDR S&P Oil & Gas Exploration & Production ETF (XOP) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, XOP ended the week -2.24% lower at 18.78 after losing $0.17 (-0.9%) today on low volume ahead of tomorrow's Presidents' Day market holiday. Closing below Thursday's low at 18.86, the ETF confirmed its breakout through the prior session low after trading up to $0.23 below it intraday.
Daily Candlestick Chart (XOP as at Feb 14, 2020):
Friday's trading range has been $0.51 (2.67%), that's slightly below the last trading month's daily average range of $0.52. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for XOP.
Three candlestick patterns are matching today's price action, the Bullish Hikkake Pattern and the Last Engulfing Bottom Pattern which are both known as bullish patterns and one bearish pattern, the Black Candle.
After trading down to 18.63 earlier during the day, the market bounced off the key technical support level at 18.77 (S1). The failure to close below the support might increase that levels significance as support going forward. When prices bounced off a significant support level the last time on January 24th, XOP actually lost -3.62% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for XOP ETF. Out of 421 times, XOP closed higher 57.24% 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 54.63% with an average market move of 0.26%.