APA finds buyers at key support level
Apache Corporation (APA) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
APA finished the month 13.7% higher at 15.35 after losing $0.66 (-4.12%) today, significantly underperforming the S&P 500 (0.77%). Closing below Thursday's low at 15.36, the share confirmed its breakout through the prior session low after trading up to $0.20 below it intraday.
Daily Candlestick Chart (APA as at Jul 31, 2020):
Friday's trading range has been $0.96 (6.02%), that's above the last trading month's daily average range of $0.81. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for APA.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on Tuesday, APA actually gained 2.48% on the following trading day.
After trading down to 15.16 earlier during the day, Apache bounced off the key technical support level at 15.20 (S1). The failure to close below the support could increase that levels significance as support going forward.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and might now be heading back down towards the mean of the Bollinger Bands at 13.74.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the six 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. Out of 386 times, APA closed higher 55.18% 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 six trading days, showing a win rate of 52.33% with an average market move of 0.70%.