COG gains $0.56 (3.09%) after posting strong earnings
Cabot Oil & Gas Corporation (COG) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
COG ended the month 8.85% higher at 18.70 after gaining $0.56 (3.09%) today on high volume, significantly outperforming the S&P 500 (0.77%) following Thursday's earnings report. Closing above Thursday's high at 18.49, Cabot Oil confirmed its breakout through the prior session high after trading up to $0.46 above it intraday.
Daily Candlestick Chart (COG as at Jul 31, 2020):
COG reported earnings of $0.05 per share after Thursday's market close. With analysts having expected an EPS of $0.03, Cabot Oil & Gas Corporation beat market expectations by 66.7%. The company's last earnings report was released on April 30, 2020, when Cabot Oil & Gas Corporation reported earnings of $0.14 per share surpassing market expectations by 7.7%.
Friday's trading range has been $1.10 (6.11%), that's far above the last trading month's daily average range of $0.67. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for COG. Prices continued to consolidate within a tight trading range between 17.85 and 18.95 where it has been caught now for the whole last trading week.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. Notwithstanding a weak opening the stock managed to close above the previous day's open and close, forming a bullish Engulfing Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
The share managed to close back above the 100-day moving average at 18.69 for the first time since July 24th. Unable to break through the key technical resistance level at 18.86 (R1), the market closed below it after spiking up to 18.95 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. When prices bounced off a significant resistance level the last time on July 20th, COG actually gained 3.87% on the following trading day. COG found buyers again today around 17.85 for the third trading day in a row after having found demand at 17.98 in the prior session and at 17.87 two days ago.
Cabot Oil shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Among the 11 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 96 times, COG closed higher 54.17% 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 60.42% with an average market move of 1.69%.