AXAS closes below its opening price unable to hold early session gains
Abraxas Petroleum Corporation (AXAS) Technical Analysis Report for Jul 23, 2020 | by Techniquant Editorial Team
AXAS finished Thursday at 0.23 tanking $0.02 (-8.0%), strongly underperforming the S&P 500 (-1.23%). This is the biggest single-day loss in over three weeks. Trading $0.01 higher after the open, Abraxas Petroleum was unable to hold its gains as the bears took control ending the day below its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (AXAS as at Jul 23, 2020):
Thursday's trading range has been $0.03 (12.5%), that's above the last trading month's daily average range of $0.02. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for AXAS.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on June 10th, AXAS lost -15.63% on the following trading day.
After trading as low as 0.22 during the day, the market found support at the 20-day moving average at 0.22. The share closed back below the 50-day moving average at 0.24.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Trading close to May's low at 0.18 we might see further downside momentum if potential sell stops at the level get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. Its common bearish interpretation has been confirmed for Abraxas Petroleum. Out of 151 times, AXAS closed lower 50.33% 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 49.67% with an average market move of -1.09%.