CNX closes above its opening price after recovering from early selling pressure
CNX Resources Corporation (CNX) Technical Analysis Report for Jan 15, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, CNX ended Wednesday at 7.93 edging higher $0.07 (0.89%), outperforming the S&P 500 (0.19%). Trading up to $0.10 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (CNX as at Jan 15, 2020):
Wednesday's trading range has been $0.26 (3.34%), that's far below the last trading month's daily average range of $0.39. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for CNX.
Notwithstanding a weak opening the share managed to close above the previous day's open and close, forming a bullish Engulfing Candle. Additionally, two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
The stock managed to close back above the 100-day moving average at 7.87 for the first time since January 8th. When this moving average was crossed above the last time on December 16, 2019, CNX gained 5.39% on the following trading day. After having been unable to move lower than 7.73 in the prior session, CNX Resources found buyers again around the same price level today at 7.68.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Buying could accelerate should prices move above the nearby swing high at 8.15 where further buy stops might get triggered.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Engulfing Candle" stand out. Its common bullish interpretation has been confirmed for CNX Resources. Out of 87 times, CNX closed higher 56.32% 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 four trading days, showing a win rate of 58.62% with an average market move of 0.56%.