AXAS ends the day on a bearish note closing near the low of the day
Abraxas Petroleum Corporation (AXAS) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, AXAS ended the week -4.17% lower at 0.23 after losing $0.01 (-4.17%) today, significantly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. The bears were in full control today, moving the market lower throughout the whole session. Ending with a weak close near the low of the day sets a bearish note for the next session.
Daily Candlestick Chart (AXAS as at Feb 14, 2020):
Friday's trading range has been $0.01 (4.17%), that's far below the last trading month's daily average range of $0.02. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for AXAS.
Three candlestick patterns are matching today's price action, the Tweezer Bottom which is known as bullish pattern and two bearish patterns, the Bearish Short Candle and the Black Candle.
After having been unable to move lower than 0.23 in the previous session, the market found buyers again around the same price level today at 0.23. The last time this happened on Tuesday, AXAS gained 8.33% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might accelerate should prices move below the nearby swing low at 0.21 where further sell stops could get triggered. With prices trading close to this year's low at 0.21, downside momentum might speed up should the stock break out to new lows for the year.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior low" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Abraxas Petroleum. Out of 617 times, AXAS closed lower 52.35% 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 48.30% with an average market move of -0.10%.