CNQ closes below its opening price unable to hold early session gains
Canadian Natural Resources Limited (CNQ) Technical Analysis Report for Feb 20, 2020 | by Techniquant Editorial Team
CNQ finished Thursday at 30.43 losing $0.09 (-0.29%) on low volume, but still slightly outperforming the S&P 500 (-0.38%). Trading $0.15 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 February 4th, CNQ actually gained 2.31% 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 (CNQ as at Feb 20, 2020):
Thursday's trading range has been $0.38 (1.25%), that's far below the last trading month's daily average range of $0.64. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for CNQ.
After moving higher in the prior session, Canadian Natural closed lower but above the previous day's open today, forming a bearish Harami Candle. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
After spiking up to 30.67 during the day, the stock found resistance at the 50-day moving average at 30.60.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 50" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Canadian Natural. Out of 27 times, CNQ closed higher 66.67% 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 10 trading days, showing a win rate of 51.85% with an average market move of 2.23%.