CDEV closes above its opening price after recovering from early selling pressure
Centennial Resource Development Inc. (CDEV) Technical Analysis Report for Aug 12, 2020 | by Techniquant Editorial Team
CDEV finished Wednesday at 0.91 gaining $0.03 (3.41%) on low volume, strongly outperforming the S&P 500 (1.4%). Trading up to $0.02 lower after the open, Centennial Resource managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Monday, CDEV actually lost -4.35% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (CDEV as at Aug 12, 2020):
Wednesday's trading range has been $0.04 (4.44%), that's far below the last trading month's daily average range of $0.07. 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.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
Prices are trading close to the key technical support level at 0.86 (S1). The share found buyers again today around 0.88 for the third trading day in a row after having found demand at 0.87 in the previous session and at 0.87 two days ago.
The market shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying might speed up should prices move above the nearby swing high at 0.98 where further buy stops could get triggered. Selling might accelerate should prices move below the close-by swing low at 0.86 where further sell stops could get activated. Further buying might move prices higher should the market test July's nearby high at 0.99.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Although it is usually interpreted as neutral, it has actually shown to be bearish for Centennial Resource. Out of 286 times, CDEV closed lower 51.05% 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 52.10% with an average market move of -0.02%.