COP finds buyers at key support level
ConocoPhillips (COP) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, COP finished Wednesday at 35.08 surging $1.28 (3.79%) on high volume, notably outperforming the S&P 500 (-0.46%). This is the biggest single-day gain in over a month. The last time we've seen such an unusually strong single-day gain on August 12th, COP actually lost -2.47% on the following trading day. Closing above Tuesday's high at 34.22, the market confirmed its breakout through the prior session high after trading up to $1.31 above it intraday.
Daily Candlestick Chart (COP as at Sep 16, 2020):
Wednesday's trading range has been $1.88 (5.51%), that's far above the last trading month's daily average range of $1.01. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for COP.
One bullish candlestick pattern matches today's price action, the White Candle.
After trading down to 33.65 earlier during the day, ConocoPhillips bounced off the key technical support level at 33.74 (S1). The failure to close below the support could increase that levels significance as support going forward. Prices are trading close to the key technical resistance level at 35.90 (R1). After having been unable to move lower than 33.61 in the previous session, the stock found buyers again around the same price level today at 33.65.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for ConocoPhillips. Out of 412 times, COP closed higher 53.88% 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 51.94% with an average market move of 0.29%.