CNX closes above its opening price after recovering from early selling pressure
CNX Resources Corporation (CNX) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, CNX ended the month -15.11% lower at 8.65 after gaining $0.08 (0.93%) today, underperforming the S&P 500 (1.54%). Trading up to $0.17 lower after the open, the stock 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 missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (CNX as at Jun 30, 2020):
Tuesday's trading range has been $0.34 (4.0%), that's far below the last trading month's daily average range of $0.68. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for CNX. Prices continued to consolidate within a tight trading range between 8.18 and 8.81 where it has been caught now for the last three trading days.
One bullish candlestick pattern matches today's price action, the Tweezer Bottom. The last time a Tweezer Bottom showed up on January 23rd, CNX actually lost -3.17% on the following trading day.
After having been unable to move lower than 8.32 in the previous session, the share found buyers again around the same price level today at 8.32.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Selling could accelerate should prices move below the nearby swing low at 8.18 where further sell stops might get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Tweezer Bottom" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for CNX Resources. Out of 16 times, CNX closed lower 56.25% 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 62.50% with an average market move of -1.95%.