CNQ finds buyers again around 29.19
Canadian Natural Resources Limited (CNQ) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, CNQ finished the week 1.1% higher at 29.29 after losing $0.08 (-0.27%) today, slightly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. 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 (CNQ as at Feb 14, 2020):
Friday's trading range has been $0.46 (1.56%), that's below the last trading month's daily average range of $0.60. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CNQ.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
After trading down to 29.19 earlier during the day, the share bounced off the key technical support level at 29.20 (S1). The failure to close below the support might increase that levels importance as support going forward. When prices bounced off a significant support level the last time on January 24th, CNQ actually lost -3.44% on the following trading day. After having been unable to move lower than 29.26 in the prior session, the stock found buyers again around the same price level today at 29.19.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could speed up should prices move below the nearby swing low at 28.67 where further sell stops might get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Outside Bar" stand out. Its common bearish interpretation has been confirmed for Canadian Natural. Out of 101 times, CNQ closed lower 55.45% 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 50.50% with an average market move of -0.15%.