AXAS dominated by bears dragging the market lower throughout the day
Abraxas Petroleum Corporation (AXAS) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
AXAS finished the month 21.05% higher at 0.23 after losing $0.02 (-8.0%) today, strongly underperforming the S&P 500 (1.54%). Today's close at 0.23 marks the lowest recorded closing price since June 4th. 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 Jun 30, 2020):
Tuesday's trading range has been $0.01 (4.17%), that's far below the last trading month's daily average range of $0.04. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher 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. The last time a Tweezer Bottom showed up on June 22nd, AXAS gained 6.90% on the following trading day.
Abraxas Petroleum closed below the 50-day moving average at 0.25 for the first time since April 22nd. 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 stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling might speed up should prices move below the close-by swing low at 0.22 where further sell stops could get triggered. Further selling might move prices lower should the market test May's nearby low at 0.18.
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 631 times, AXAS closed lower 51.98% 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 five trading days, showing a win rate of 53.72% with an average market move of 0.53%.