CXO runs into sellers again around 46.57
Concho Resources Inc. (CXO) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
CXO finished Thursday at 44.80 gaining $1.04 (2.38%) on low volume, notably underperforming the S&P 500 (6.24%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (CXO as at Mar 26, 2020):
Thursday's trading range has been $3.76 (8.6%), that's below the last trading month's daily average range of $5.82. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CXO.
One bearish candlestick pattern matches today's price action, the Last Engulfing Top Pattern.
Prices are trading close to the key technical resistance level at 46.93 (R1). After having been unable to move above 46.29 in the prior session, the stock ran into sellers again around the same price level today, failing to move higher than 46.57. The last time this happened on March 16th, CXO lost -5.24% on the following trading day.
Though Concho Resources is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Top Pattern" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Concho Resources. Out of 60 times, CXO closed higher 58.33% 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 eight trading days, showing a win rate of 53.33% with an average market move of 0.20%.