XOP runs into sellers again around 9.19
SPDR S&P Oil & Gas Exploration & Production ETF (XOP) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, XOP finished Thursday at 8.63 gaining $0.06 (0.7%). Trading $0.54 higher after the open, the ETF was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (XOP as at Mar 26, 2020):
Thursday's trading range has been $0.78 (9.02%), that's below the last trading month's daily average range of $1.08. 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.
Two candlestick patterns are matching today's price action, the Gravestone Doji which is known as bearish pattern and one neutral pattern, the Doji. The last time a Doji showed up on March 12th, XOP gained 14.81% on the following trading day.
Prices are trading close to the key technical support level at 8.15 (S1). After having been unable to move above 9.05 in the prior session, the market ran into sellers again around the same price level today, failing to move higher than 9.19.
Although XOP ETF is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Gravestone Doji" stand out. Its common bearish interpretation has been confirmed for XOP ETF. Out of 29 times, XOP closed lower 62.07% 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 nine trading days, showing a win rate of 58.62% with an average market move of -0.59%.