CXO closes lower for the 2nd day in a row
Concho Resources Inc. (CXO) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, CXO finished the week -1.47% lower at 77.93 after losing $0.71 (-0.9%) today on low volume, significantly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (CXO as at Feb 14, 2020):
Friday's trading range has been $2.43 (3.08%), that's above the last trading month's daily average range of $2.03. Things look different on the weekly timeframe, where the market's trading range of the last week has been way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CXO.
One bullish candlestick pattern matches today's price action, the Last Engulfing Bottom Pattern.
Prices broke below the key technical support level at 78.16 (now R1), which is likely to act as resistance going forward. After having been unable to move above 79.54 in the previous session, the share ran into sellers again around the same price level today, failing to move higher than 79.23. The last time this happened on February 6th, CXO lost -1.70% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could accelerate should prices move below the nearby swing low at 76.75 where further sell stops might get activated. With prices trading close to this year's low at 74.79, downside momentum could speed up should the market break out to new lows for the year.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Bottom Pattern" stand out. Its common bullish interpretation has been confirmed for Concho Resources. Out of 50 times, CXO closed higher 60.00% 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 64.00% with an average market move of 2.70%.