XOP closes above its opening price after recovering from early selling pressure
SPDR S&P Oil & Gas Exploration & Production ETF (XOP) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, XOP finished the month -1.55% lower at 51.37 after edging lower $0.04 (-0.08%) today. Trading up to $0.74 lower after the open, XOP ETF managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (XOP as at Jul 31, 2020):
Friday's trading range has been $1.17 (2.3%), that's far below the last trading month's daily average range of $1.86. Weekly volatility is also lower, being slightly 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 50.24 and 52.83 where it has been caught now for the whole last trading week.
After having been unable to move lower than 50.25 in the prior session, the ETF found buyers again around the same price level today at 50.24. The last time this happened on Wednesday, XOP actually lost -2.56% on the following trading day.
The market shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying could speed up should prices move above the close-by swing high at 52.83 where further buy stops might get activated. Selling could accelerate should prices move below the nearby swing low at 50.16 where further sell stops might get triggered. As prices are trading close to July's high at 54.27, upside momentum could speed up should XOP mark new highs for the month.
Among the six 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 427 times, XOP closed higher 53.86% of the time on the next trading day after the market condition occurred.