COG runs into sellers around 18.97 for the third day in a row
Cabot Oil & Gas Corporation (COG) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
COG ended the week 3.56% higher at 18.90 after gaining $0.27 (1.45%) today on low volume, significantly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading up to $0.36 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (COG as at May 22, 2020):
Friday's trading range has been $0.72 (3.87%), that's slightly below the last trading month's daily average range of $0.86. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for COG. Prices continued to consolidate within a tight trading range between 18.18 and 19.12 where it has been caught now for the whole last trading week.
Regardless of a weak opening the market managed to close above the prior day's open and close, forming a bullish Engulfing Candle.
Cabot Oil managed to close back above the 50-day moving average at 18.79. Prices are trading close to the key technical resistance level at 19.06 (R1). The stock ran into sellers again today around 18.97 for the third trading day in a row after having found sellers at 19.06 in the previous session and at 19.00 two days ago. The last time this happened on May 5th, COG lost -3.87% on the following trading day.
Although COG is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might accelerate should prices move above the close-by swing high at 19.06 where further buy stops could get triggered. Selling might speed up should prices move below the nearby swing low at 18.18 where further sell stops could get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 50" stand out. Its common bullish interpretation has been confirmed for Cabot Oil. Out of 95 times, COG closed higher 53.68% 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 60.00% with an average market move of 1.48%.