CDEV finds buyers again around 0.77
Centennial Resource Development Inc. (CDEV) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, CDEV ended the month -11.24% lower at 0.79 after losing $0.03 (-3.66%) today on low volume, strongly underperforming the S&P 500 (0.77%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (CDEV as at Jul 31, 2020):
Friday's trading range has been $0.06 (7.23%), that's below the last trading month's daily average range of $0.08. 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 CDEV.
Two candlestick patterns are matching today's price action, the Tweezer Bottom which is known as bullish pattern and one bearish pattern, the Black Candle.
The share closed back below the 100-day moving average at 0.81 for the first time since July 20th. When this moving average was crossed below the last time on June 17th, CDEV actually gained 1.64% on the following trading day. After having been unable to move lower than 0.77 in the prior session, Centennial Resource found buyers again around the same price level today at 0.77.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Trading close to May's low at 0.70 we could see further downside momentum if potential sell stops at the level get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 100" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Centennial Resource. Out of 23 times, CDEV closed higher 56.52% of the time on the next trading day after the market condition occurred.