APA closes within prior day's range
Apache Corporation (APA) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, APA finished Wednesday at 12.50 gaining $0.56 (4.69%), notably outperforming the S&P 500 (-0.46%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (APA as at Sep 16, 2020):
Wednesday's trading range has been $0.89 (7.39%), that's far above the last trading month's daily average range of $0.66. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for APA.
Two candlestick patterns are matching today's price action, the Tweezer Bottom and the White Candle which are both known as bullish patterns.
Prices are trading close to the key technical resistance level at 12.87 (R1). After having been unable to move lower than 11.88 in the prior session, the stock found buyers again around the same price level today at 11.88. The last time this happened on September 4th, APA actually lost -10.68% on the following trading day.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Tweezer Bottom" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Apache. Out of 7 times, APA closed lower 57.14% 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 85.71% with an average market move of -2.85%.