CXO breaks back below 20-day moving average
Concho Resources Inc. (CXO) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, CXO ended the week 2.89% higher at 55.83 after losing $0.89 (-1.57%) today, significantly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing below Thursday's low at 56.53, the stock confirmed its breakout through the previous session low after trading up to $1.49 below it intraday.
Daily Candlestick Chart (CXO as at May 22, 2020):
Friday's trading range has been $1.76 (3.11%), that's far below the last trading month's daily average range of $3.11. 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 CXO.
Concho Resources closed back below the 20-day moving average at 56.62 for the first time since May 15th. When this moving average was crossed below the last time on May 13th, CXO actually gained 1.63% on the following trading day.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Support S1" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Concho Resources. Out of 264 times, CXO closed higher 53.03% 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 seven trading days, showing a win rate of 55.30% with an average market move of 0.09%.