CDEV rockets, gaining $0.07 (11.67%) within a single day on high volume
Centennial Resource Development Inc. (CDEV) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, CDEV ended Wednesday at 0.67 surging $0.07 (11.67%) on high volume, significantly outperforming the S&P 500 (-0.46%). This is the biggest single-day gain in over a month. Trading up to $0.02 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on August 28th, CDEV actually lost -6.41% on the following trading day.
Daily Candlestick Chart (CDEV as at Sep 16, 2020):
Wednesday's trading range has been $0.06 (9.23%), that's above the last trading month's daily average range of $0.05. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CDEV.
After spiking up to 0.69 during the day, the share found resistance at the 20-day moving average at 0.67.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
As prices are trading close to September's high at 0.73, upside momentum might speed up should the market mark new highs for the month.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 20" stand out. Its common bearish interpretation has been confirmed for Centennial Resource. Out of 28 times, CDEV closed lower 60.71% 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 10 trading days, showing a win rate of 46.43% with an average market move of -0.26%.