CDEV dominated by bears dragging the market lower throughout the day
Centennial Resource Development Inc. (CDEV) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
CDEV ended the month -11.88% lower at 0.89 after losing $0.06 (-6.32%) today, significantly underperforming the S&P 500 (1.54%). Today's close at 0.89 marks the lowest recorded closing price since May 15th. The bears were in full control today, moving the market lower throughout the whole session. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (CDEV as at Jun 30, 2020):
Tuesday's trading range has been $0.07 (7.45%), that's far below the last trading month's daily average range of $0.18. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CDEV.
Three candlestick patterns are matching today's price action, the Tweezer Bottom which is known as bullish pattern and two bearish patterns, the Bearish Short Candle and the Black Candle. The last time a Bearish Short Candle showed up on April 14th, CDEV lost -12.12% on the following trading day.
Prices are trading close to the key technical support level at 0.80 (S1). After having been unable to move lower than 0.88 in the previous session, Centennial Resource found buyers again around the same price level today at 0.88.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling might accelerate should prices move below the nearby swing low at 0.87 where further sell stops could get activated. Further selling might move prices lower should the market test May's close-by low at 0.70.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Centennial Resource. Out of 302 times, CDEV closed higher 51.66% 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 51.99% with an average market move of 0.41%.