CRC falls to lowest close since November 22, 2019
California Resources Corporation (CRC) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, CRC ended the week -7.95% lower at 6.37 after losing $0.20 (-3.04%) today, strongly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 6.37 marks the lowest recorded closing price since November 22, 2019. Closing below Thursday's low at 6.51, the market confirmed its breakout through the previous session low after trading up to $0.23 below it intraday.
Daily Candlestick Chart (CRC as at Feb 14, 2020):
Friday's trading range has been $0.47 (7.08%), that's below the last trading month's daily average range of $0.57. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CRC.
Two candlestick patterns are matching today's price action, the Last Engulfing Bottom Pattern which is known as bullish pattern and one bearish pattern, the Black Candle.
Prices broke below the key technical support level at 6.55 (now R1), which is likely to act as resistance going forward. The last time this happened on January 24th, CRC lost -3.42% on the following trading day.
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 Price Action based market condition "4 Consecutive Lower Closes" stand out. Its common bearish interpretation has been confirmed for California Resources. Out of 41 times, CRC closed lower 65.85% 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 73.17% with an average market move of -7.72%.