CNX closes higher for the 3rd day in a row
CNX Resources Corporation (CNX) Technical Analysis Report for Aug 04, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, CNX ended Tuesday at 10.29 gaining $0.14 (1.38%), significantly outperforming the S&P 500 (0.36%). Today's close at 10.29 marks the highest recorded closing price since June 17th. Trading up to $0.30 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on July 31st, CNX gained 5.18% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (CNX as at Aug 04, 2020):
Tuesday's trading range has been $0.76 (7.54%), that's above the last trading month's daily average range of $0.62. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CNX.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
After trading down to 9.78 earlier during the day, the market bounced off the key technical support level at 9.80 (S1). The failure to close below the support could increase that levels importance as support going forward. Prices are trading close to the key technical resistance level at 10.59 (R1).
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day while might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 9.04.
The share shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close above the upper Bollinger Band" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for CNX Resources. Out of 132 times, CNX closed lower 53.79% 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 53.03% with an average market move of -1.71%.