CXO dominated by bulls lifting the market higher throughout the day
Concho Resources Inc. (CXO) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
CXO ended Wednesday at 48.76 surging $2.57 (5.56%), strongly outperforming the S&P 500 (-0.46%). This is the biggest single-day gain in over a month. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Tuesday's high at 47.58, the share confirmed its breakout through the previous session high after trading up to $1.66 above it intraday.
Daily Candlestick Chart (CXO as at Sep 16, 2020):
Wednesday's trading range has been $2.74 (5.89%), that's far above the last trading month's daily average range of $1.68. 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.
One bullish candlestick pattern matches today's price action, the White Candle.
Unable to break through the key technical resistance level at 49.19 (R1), Concho Resources closed below it after spiking up to 49.24 earlier during the day. The failure to close above the resistance could increase that levels significance going forward. When prices bounced off a significant resistance level the last time on September 8th, CXO actually gained 2.46% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R1" stand out. Its common bearish interpretation has been confirmed for Concho Resources. Out of 389 times, CXO closed lower 59.90% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after seven trading days, showing a win rate of 51.93% with an average market move of 0.09%.