COP runs into sellers again around 32.46
ConocoPhillips (COP) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, COP ended Thursday at 32.09 gaining $1.15 (3.72%), strongly underperforming the S&P 500 (6.24%). Trading up to $0.72 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (COP as at Mar 26, 2020):
Thursday's trading range has been $2.06 (6.62%), that's far below the last trading month's daily average range of $3.36. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for COP.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
Buyers managed to take out the key technical resistance level at 32.00 (now S1), which is likely to act as support going forward. After having been unable to move above 32.56 in the prior session, the share ran into sellers again around the same price level today, missing to move higher than 32.46. The last time this happened on March 19th, COP actually gained 4.88% on the following trading day.
Although the market is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could speed up should prices move above the close-by swing high at 32.56 where further buy stops might get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for ConocoPhillips. Out of 148 times, COP closed higher 54.05% 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 54.05% with an average market move of 0.20%.