APA finds buyers again around 44.03
Apache Corporation (APA) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
APA ended the week -5.94% lower at 45.13 after gaining $0.50 (1.12%) today, slightly underperforming the S&P 500 (1.42%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (APA as at Oct 12, 2018):
Friday's trading range has been $1.53 (3.37%), that's slightly above the last trading month's daily average range of $1.30. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for APA.
One bullish candlestick pattern matches today's price action, the Takuri Line.
The share managed to break above the 50-day moving average at 45.12 today. Unable to break through the key technical resistance level at 45.46 (R1), the stock closed below it after spiking up to 45.56 earlier during the day. The failure to close above the resistance could increase that levels significance going forward. After having been unable to move lower than 44.18 in the previous session, Apache Corporation found buyers again around the same price level today at 44.03. The last time this happened on October 4th, APA actually lost -1.03% on the following trading day.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and might now be heading back up towards the mean of the Bollinger Bands at 47.19.
While the market is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Among the eight 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 Apache Corporation. Out of 484 times, APA closed higher 58.06% 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 52.48% with an average market move of 0.50%.