COP closes above its opening price after recovering from early selling pressure
ConocoPhillips (COP) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, COP ended the week 5.9% higher at 43.28 after losing $0.44 (-1.01%) today on low volume, significantly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading up to $0.61 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on May 14th, COP gained 2.35% on the following trading day.
Daily Candlestick Chart (COP as at May 22, 2020):
Friday's trading range has been $1.06 (2.47%), that's far below the last trading month's daily average range of $1.89. 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 COP.
Prices are trading close to the key technical resistance level at 43.58 (R1).
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could accelerate should prices move above the nearby swing high at 44.87 where further buy stops might get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Its common bearish interpretation has been confirmed for ConocoPhillips. Out of 284 times, COP closed lower 54.58% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 53.17% with an average market move of 0.03%.