CXO dominated by bulls lifting the market higher throughout the day
Concho Resources Inc. (CXO) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
CXO finished the month -5.54% lower at 51.50 after gaining $1.50 (3.0%) today, notably outperforming the S&P 500 (1.54%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 51.16, the market confirmed its breakout through the previous session high after trading up to $0.70 above it intraday.
Daily Candlestick Chart (CXO as at Jun 30, 2020):
Tuesday's trading range has been $2.38 (4.79%), that's below the last trading month's daily average range of $2.96. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CXO.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. In spite of a weak opening the stock managed to close above the prior day's open and close, forming a bullish Engulfing Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on June 15th, CXO gained 1.84% on the following trading day.
Buyers managed to take out the key technical resistance level at 51.03 (now S1), which is likely to act as support going forward. After having been unable to move lower than 49.83 in the previous session, the share found buyers again around the same price level today at 49.48.
Concho Resources shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Engulfing Candle" stand out. Its common bullish interpretation has been confirmed for Concho Resources. Out of 59 times, CXO closed higher 55.93% 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 61.02% with an average market move of -0.30%.