XOP still stuck within tight trading range
SPDR S&P Oil & Gas Exploration & Production ETF (XOP) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
XOP ended the week 10.2% higher at 52.83 after edging higher $0.10 (0.19%) today on low volume ahead of tomorrow's Memorial Day market holiday. Trading up to $1.00 lower after the open, XOP ETF managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on May 15th, XOP gained 10.43% 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 (XOP as at May 22, 2020):
Friday's trading range has been $1.51 (2.88%), that's far below the last trading month's daily average range of $2.86. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for XOP. Prices continued to consolidate within a tight trading range between 50.64 and 53.97 where it has been caught now for the whole last trading week.
Prices are trading close to the key technical resistance level at 54.01 (R1).
The ETF shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the close-by swing high at 53.97 where further buy stops could get triggered. Further buying might move prices higher should the market test April's nearby high at 55.71.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bullish Intraday Reversal" stand out. Its common bullish interpretation has been confirmed for XOP ETF. Out of 432 times, XOP closed higher 53.01% of the time on the next trading day after the market condition occurred.