APC closes above its opening price after recovering from early selling pressure
Anadarko Petroleum Corporation (APC) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
APC ended the week -2.16% lower at 67.63 after gaining $1.35 (2.04%) today on high volume, outperforming the S&P 500 (1.42%). Trading up to $0.90 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (APC as at Oct 12, 2018):
Friday's trading range has been $1.68 (2.5%), that's above the last trading month's daily average range of $1.41. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for APC.
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. Additionally, one bullish candlestick pattern matches today's price action, the Hammer.
The share managed to break above the 20-day moving average at 67.05 today. After having been unable to move above 68.08 in the previous session, Anadarko Petroleum ran into sellers again around the same price level today, failing to move higher than 67.98. The last time this happened on Wednesday, APC lost -2.53% on the following trading day.
While the stock is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hammer" stand out. Its common bullish interpretation has been confirmed for Anadarko Petroleum. Out of 28 times, APC closed higher 53.57% 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 10 trading days, showing a win rate of 60.71% with an average market move of 3.30%.