CNX still stuck within tight trading range
CNX Resources Corporation (CNX) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
CNX ended the month 11.56% higher at 9.65 after gaining $0.31 (3.32%) today, notably outperforming the S&P 500 (0.77%). Today's close at 9.65 marks the highest recorded closing price since June 19th. Trading up to $0.32 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 9.51, the stock confirmed its breakout through the prior session high after trading up to $0.15 above it intraday.
Daily Candlestick Chart (CNX as at Jul 31, 2020):
Friday's trading range has been $0.56 (5.94%), that's slightly below the last trading month's daily average range of $0.60. Weekly volatility is also lower, being slightly below 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 8.54 and 9.67 where it has been caught now for the whole last trading week.
CNX Resources managed to close back above the 50-day moving average at 9.54 for the first time since July 24th. When this moving average was crossed above the last time on July 24th, CNX actually lost -8.73% on the following trading day. Prices are trading close to the key technical resistance level at 9.80 (R1).
The share shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying could speed up should prices move above the close-by swing high at 9.67 where further buy stops might get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Up Close near high of period" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for CNX Resources. Out of 506 times, CNX closed lower 52.77% 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 50.79% with an average market move of -0.49%.