COG crashes, losing $0.86 (-3.7%) within a single day
Cabot Oil & Gas Corporation (COG) Technical Analysis Report for Jul 17, 2019 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, COG finished Wednesday at 22.39 tanking $0.86 (-3.7%), notably underperforming the S&P 500 (-0.65%). This is the biggest single-day loss in over a month. Today's close at 22.39 marks the lowest recorded closing price since December 31, 2018. The bears were in full control today, moving the market lower throughout the whole session. Closing below Tuesday's low at 23.07, the share confirmed its breakout through the prior session low after trading up to $0.72 below it intraday.
Daily Candlestick Chart (COG as at Jul 17, 2019):
Wednesday's trading range has been $0.87 (3.75%), that's far above the last trading month's daily average range of $0.47. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for COG.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices broke below the key technical support level at 22.43 (now R1), which is likely to act as resistance going forward. The last time this happened on Monday, COG lost -1.11% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
With prices trading close to this year's low at 21.91, downside momentum could speed up should the stock break out to new lows for the year.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Support S1" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Cabot Oil. Out of 293 times, COG closed higher 51.19% 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 59.04% with an average market move of 1.70%.