AXAS dominated by bears dragging the market lower throughout the day
Abraxas Petroleum Corporation (AXAS) Technical Analysis Report for Jul 28, 2020 | by Techniquant Editorial Team
AXAS ended Tuesday at 0.21 flat on low volume, outperforming the S&P 500 (-0.65%). The bears were in full control today, moving the market lower throughout the whole session.
Daily Candlestick Chart (AXAS as at Jul 28, 2020):
Tuesday'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.
Four candlestick patterns are matching today's price action, the Last Engulfing Bottom Pattern and the Tweezer Bottom which are both known as bullish patterns and two bearish patterns, the Bearish Short Candle and the Black Candle.
After having been unable to move lower than 0.21 in the previous session, Abraxas Petroleum found buyers again around the same price level today at 0.21. The last time this happened on July 24th, AXAS actually lost -4.55% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could accelerate should prices move below the nearby swing low at 0.20 where further sell stops might get activated. Trading close to May's low at 0.18 we could 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 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 629 times, AXAS closed lower 51.67% 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 53.90% with an average market move of 0.49%.