COG closes higher for the 3rd day in a row
Cabot Oil & Gas Corporation (COG) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, COG ended Thursday at 16.87 gaining $0.41 (2.49%), strongly underperforming the S&P 500 (6.24%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (COG as at Mar 26, 2020):
Thursday's trading range has been $1.83 (11.02%), that's slightly above the last trading month's daily average range of $1.81. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for COG.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
After trading down to 16.10 earlier during the day, the market bounced off the key technical support level at 16.34 (S1). The failure to close below the support might increase that levels importance as support going forward. When prices bounced off a significant support level the last time on Monday, COG gained 15.63% on the following trading day. After spiking up to 17.93 during the day, the share found resistance at the 200-day moving average at 17.87. After having been unable to move lower than 15.96 in the previous session, the stock found buyers again around the same price level today at 16.10.
While Cabot Oil is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 200" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Cabot Oil. Out of 14 times, COG closed higher 57.14% 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 64.29% with an average market move of 0.58%.