CLR stuck within tight trading range
Continental Resources Inc. (CLR) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, CLR finished Thursday at 9.95 losing $0.28 (-2.74%), strongly underperforming the S&P 500 (6.24%). Trading $0.80 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on March 12th, CLR actually gained 23.68% on the following trading day. 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 (CLR as at Mar 26, 2020):
Thursday's trading range has been $1.36 (13.36%), that's below the last trading month's daily average range of $1.71. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for CLR. Prices continued to consolidate within a tight trading range between 9.16 and 10.98 where it has been caught now for the last three trading days.
Two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Shooting Star which are both known as bearish patterns.
After having been unable to move above 10.75 in the prior session, the stock ran into sellers again around the same price level today, failing to move higher than 10.98.
Although the share is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous High" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Continental Resources. Out of 516 times, CLR closed higher 52.71% 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 two trading days, showing a win rate of 54.65% with an average market move of 0.18%.