APA finds buyers around 12.87 for the third day in a row
Apache Corporation (APA) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, APA finished the month 25.12% higher at 13.50 after gaining $0.17 (1.28%) today, slightly underperforming the S&P 500 (1.54%). Closing above Monday's high at 13.46, the stock confirmed its breakout through the prior session high after trading up to $0.16 above it intraday.
Daily Candlestick Chart (APA as at Jun 30, 2020):
Tuesday's trading range has been $0.75 (5.73%), that's below the last trading month's daily average range of $1.13. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for APA. Prices continued to consolidate within a tight trading range between 12.68 and 13.90 where it has been caught now for the whole last trading week.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. Even with a weak opening the market managed to close above the previous day's open and close, forming a bullish Engulfing Candle. Additionally, two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
After spiking up to 13.62 during the day, Apache found resistance at the 100-day moving average at 13.51. The last time this happened on June 5th, APA actually gained 10.33% on the following trading day. The share found buyers again today around 12.87 for the third trading day in a row after having found demand at 12.92 in the prior session and at 12.80 two days ago.
APA shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling might accelerate should prices move below the nearby swing low at 12.68 where further sell stops could get triggered.
Among the 13 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous two Highs" stand out. Its common bearish interpretation has been confirmed for Apache. Out of 113 times, APA closed lower 61.06% 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 53.10% with an average market move of -0.65%.