CNX finds buyers again around 10.07
CNX Resources Corporation (CNX) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, CNX ended the week 6.57% higher at 10.38 after gaining $0.16 (1.57%) today, notably outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (CNX as at May 22, 2020):
Friday's trading range has been $0.44 (4.32%), that's below the last trading month's daily average range of $0.78. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for CNX. Prices continued to consolidate within a tight trading range between 9.88 and 10.74 where it has been caught now for the whole last trading week.
One bearish candlestick pattern matches today's price action, the Last Engulfing Top Pattern.
Prices are trading close to the key technical resistance level at 10.79 (R1). After having been unable to move lower than 10.15 in the prior session, CNX Resources found buyers again around the same price level today at 10.07. The last time this happened on May 12th, CNX actually lost -3.94% on the following trading day.
While the share is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might accelerate should prices move above the nearby swing high at 10.69 where further buy stops could get activated. Selling might speed up should prices move below the close-by swing low at 9.94 where further sell stops could get triggered. As prices are trading close to May's high at 11.27, upside momentum might accelerate should the market mark new highs for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for CNX Resources. Out of 303 times, CNX closed lower 50.83% 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 53.14% with an average market move of -0.41%.