CNX breaks above 20-day moving average for the first time since August 28th
CNX Resources Corporation (CNX) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
CNX ended Wednesday at 11.20 surging $0.59 (5.56%), strongly outperforming the S&P 500 (-0.46%). This is the biggest single-day gain in over a month. Closing above Tuesday's high at 11.09, the share confirmed its breakout through the previous session high after trading up to $0.28 above it intraday.
Daily Candlestick Chart (CNX as at Sep 16, 2020):
Wednesday's trading range has been $0.84 (7.86%), that's far above the last trading month's daily average range of $0.51. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CNX.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
The stock managed to close above the 20-day moving average at 10.87 for the first time since August 28th. The market found buyers again today around 10.53 for the third trading day in a row after having found demand at 10.56 in the prior session and at 10.48 two days ago. The last time this happened on July 1st, CNX gained 4.28% on the following trading day.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S2" stand out. Its common bullish interpretation has been confirmed for CNX Resources. Out of 15 times, CNX closed higher 60.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 66.67% with an average market move of 5.95%.