APA closes below its opening price unable to hold early session gains
Apache Corporation (APA) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
APA finished Thursday at 5.76 losing $0.13 (-2.21%), strongly underperforming the S&P 500 (6.24%). Trading $0.66 higher after the open, Apache 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 failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (APA as at Mar 26, 2020):
Thursday's trading range has been $0.99 (16.67%), that's below the last trading month's daily average range of $1.61. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for APA.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
Prices are trading close to the key technical resistance level at 6.67 (R1). After having been unable to move above 6.67 in the previous session, the market ran into sellers again around the same price level today, failing to move higher than 6.60. The last time this happened on March 20th, APA lost -10.77% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 6.67 where further buy stops could get activated. Selling might speed up should prices move below the close-by swing low at 4.30 where further sell stops could get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. Its common bearish interpretation has been confirmed for Apache. Out of 539 times, APA closed lower 50.83% 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 52.88% with an average market move of -0.48%.