AXAS finds buyers around 0.20 for the third day in a row
Abraxas Petroleum Corporation (AXAS) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
AXAS finished the month -13.04% lower at 0.20 after losing $0.01 (-4.76%) today on high volume, strongly underperforming the S&P 500 (0.77%). Trading $0.02 higher after the open, the stock 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 31, 2020):
Friday's trading range has been $0.03 (14.29%), that's far above 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 below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for AXAS.
After spiking up to 0.23 during the day, the market has been sold off at those price levels and formed a bearish Pin Bar closing $0.03 below today's high. Additionally, three 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 one bearish pattern, the Bearish Closing Marubozu.
The share closed below the 100-day moving average at 0.21 for the first time since July 14th. When this moving average was crossed below the last time on July 14th, AXAS actually gained 10.00% on the following trading day. Abraxas Petroleum found buyers again today around 0.20 for the third trading day in a row after having found demand at 0.20 in the prior session and at 0.20 two days ago.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Selling could accelerate should prices move below the close-by 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 12 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Pin Bar" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Abraxas Petroleum. Out of 6 times, AXAS closed higher 66.67% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after seven trading days, showing a win rate of 50.00% with an average market move of -1.35%.