AXAS breaks back above 100-day moving average

Abraxas Petroleum Corporation (AXAS) Technical Analysis Report for Aug 04, 2020 | by Techniquant Editorial Team


AXAS breaks back above 100-day moving average
AXAS finds buyers around 0.20 for the forth day in a row
AXAS dominated by bulls lifting the market higher throughout the day
AXAS ends the day on a bullish note closing near the high of the day


AXAS ended Tuesday at 0.21 gaining $0.01 (5.0%), significantly outperforming the S&P 500 (0.36%) ahead of Wednesday's earnings report. The bulls were in full control today, moving the market higher throughout the whole session. Ending with a strong close near the high of the day sets a bullish note for the next session.

Daily Candlestick Chart (AXAS as at Aug 04, 2020):

Daily technical analysis candlestick chart for Abraxas Petroleum Corporation (AXAS) as at Aug 04, 2020

AXAS is set to report earnings on Wednesday. For the upcoming report, analysts expect the company to have earned $0.01 per share. The company's last earnings report was released on Nov. 13, 2019, when Abraxas Petroleum Corporation reported earnings of $0.02 per share missing market expectations by -50.0%.

Tuesday's trading range has been $0.01 (5.0%), that's below the last trading month's daily average range of $0.02. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for AXAS.

Notwithstanding a weak opening the market managed to close above the previous day's open and close, forming a bullish Engulfing Candle. Additionally, three candlestick patterns are matching today's price action, the Bullish Short Candle, the Tweezer Bottom and the White Candle which are known as bullish patterns. The last time a Bullish Short Candle showed up on July 21st, AXAS gained 13.64% on the following trading day.

Abraxas Petroleum managed to close back above the 100-day moving average at 0.21. The share was bought again around 0.20 after having seen lows at 0.20, 0.20 and 0.20 in the last three trading sessions. Obviously there is something going on at that level.

Though the stock is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.

Buying could accelerate should prices move above the nearby swing high at 0.23 where further buy stops might get triggered. Selling could speed up should prices move below the close-by swing low at 0.20 where further sell stops might get activated. Further selling could move prices lower should the market test July's nearby low at 0.19.

Among the 15 market conditions that our pattern recognition engine identified today, the statistics for the Stock Earning Report based market condition "Trading Day before Earnings Report" stand out. Although it is usually interpreted as neutral, it has actually shown to be bearish for Abraxas Petroleum. Out of 27 times, AXAS closed lower 59.26% 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 two trading days, showing a win rate of 55.56% with an average market move of -0.30%.

Market Conditions for AXAS as at Aug 04, 2020

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