CNX finds buyers around 6.04 for the forth day in a row
CNX Resources Corporation (CNX) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
CNX ended the week -17.95% lower at 6.08 after losing $0.09 (-1.46%) today on low volume, significantly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 6.08 marks the lowest recorded closing price since February 10, 2016. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (CNX as at Feb 14, 2020):
Friday's trading range has been $0.18 (2.92%), that's far below the last trading month's daily average range of $0.45. 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 slightly lower than usual for CNX. Prices continued to consolidate within a tight trading range between 6.04 and 6.51 where it has been caught now for the last three trading days.
CNX Resources was bought again around 6.04 after having seen lows at 6.05, 6.07 and 6.09 in the last three trading sessions. Obviously there is something going on at that level. The last time this happened on April 26, 2019, CNX actually lost -0.19% on the following trading day.
The trend is clearly bearish, showing an intact downtrend 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 "Low close to previous three Lows" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for CNX Resources. Out of 22 times, CNX closed lower 63.64% 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 68.18% with an average market move of -4.58%.