APA closes lower for the 2nd day in a row
Apache Corporation (APA) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, APA finished the week -2.67% lower at 27.36 after losing $0.56 (-2.01%) today, strongly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 27.36 marks the lowest recorded closing price since January 6th. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 27.83, Apache confirmed its breakout through the previous session low after trading up to $0.59 below it intraday.
Daily Candlestick Chart (APA as at Feb 14, 2020):
Friday's trading range has been $0.84 (2.99%), that's above the last trading month's daily average range of $0.74. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for APA.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 26.98 (S1).
Although the share is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
As prices are trading close to February's low at 27.10, downside momentum could speed up should the market mark new lows for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed below last periods low" stand out. Its common bearish interpretation has been confirmed for Apache. Out of 429 times, APA closed lower 51.05% 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 10 trading days, showing a win rate of 54.55% with an average market move of -0.44%.