AXAS breaks back below 20-day moving average
Abraxas Petroleum Corporation (AXAS) Technical Analysis Report for Jul 24, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, AXAS ended the week 4.76% higher at 0.22 after losing $0.01 (-4.35%) today, notably underperforming the S&P 500 (-0.62%). 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 24, 2020):
Friday's trading range has been $0.01 (4.55%), that's far below the last trading month's daily average range of $0.02. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for AXAS.
Three candlestick patterns are matching today's price action, the Southern Doji which is known as bullish pattern, one bearish pattern, the Shooting Star and one neutral pattern, the Doji.
Abraxas Petroleum closed back below the 20-day moving average at 0.22. When this moving average was crossed below the last time on June 25th, AXAS lost -7.41% on the following trading day. After having been unable to move lower than 0.22 in the prior session, the stock found buyers again around the same price level today at 0.22.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might speed up should prices move below the close-by swing low at 0.20 where further sell stops could get activated. Trading close to May's low at 0.18 we might see further downside momentum if potential sell stops at the level get triggered.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Shooting Star" stand out. Its common bearish interpretation has been confirmed for Abraxas Petroleum. Out of 44 times, AXAS closed lower 50.00% 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 59.09% with an average market move of -2.18%.