CXO dominated by bulls lifting the market higher throughout the day
Concho Resources Inc. (CXO) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
CXO ended the month 2.02% higher at 52.54 after gaining $1.79 (3.53%) today on high volume, notably outperforming the S&P 500 (0.77%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 52.41, the stock confirmed its breakout through the previous session high after trading up to $0.16 above it intraday.
Daily Candlestick Chart (CXO as at Jul 31, 2020):
Friday's trading range has been $2.57 (5.12%), that's above the last trading month's daily average range of $1.96. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CXO.
In spite of a weak opening the share 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 market managed to close back above the 100-day moving average at 52.38. When this moving average was crossed above the last time on Wednesday, CXO actually lost -4.21% on the following trading day. Prices are trading close to the key technical resistance level at 53.00 (R1). After having been unable to move above 52.41 in the previous session, Concho Resources ran into sellers again around the same price level today, failing to move higher than 52.57.
CXO shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying could accelerate should prices move above the close-by swing high at 53.61 where further buy stops might get activated. As prices are trading close to July's high at 54.91, upside momentum could speed up should the stock mark new highs for the month.
Among the 10 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 60 times, CXO closed higher 56.67% 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 six trading days, showing a win rate of 56.67% with an average market move of -0.39%.