CNX drops to lowest close since January 25, 2016
CNX Resources Corporation (CNX) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, CNX ended Thursday at 5.05 losing $0.82 (-13.97%), strongly underperforming the S&P 500 (6.24%). Today's close at 5.05 marks the lowest recorded closing price since January 25, 2016. The bears were in full control today, moving the market lower throughout the whole session. Closing below Wednesday's low at 5.51, CNX Resources confirmed its breakout through the prior session low after trading up to $0.54 below it intraday.
Daily Candlestick Chart (CNX as at Mar 26, 2020):
Thursday's trading range has been $1.20 (20.48%), that's slightly below the last trading month's daily average range of $1.24. 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 significantly higher than usual for CNX.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on Monday, CNX actually gained 10.22% on the following trading day.
Prices are trading close to the key technical support level at 4.75 (S1). Unable to break through the key technical resistance level at 6.04 (R2), the market closed below it after spiking up to 6.17 earlier during the day. The failure to close above the resistance could increase that levels significance going forward.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
With prices trading close to this year's low at 4.26, downside momentum might speed up should the share break out to new lows for the year.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R2" stand out. Its common bearish interpretation has been confirmed for CNX Resources. Out of 18 times, CNX closed lower 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 short side has been after six trading days, showing a win rate of 50.00% with an average market move of -2.58%.