EOG breaks back below 100-day moving average
EOG Resources Inc. (EOG) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
EOG finished the week 0.77% higher at 74.92 after losing $0.76 (-1.0%) today on low volume, strongly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (EOG as at Feb 14, 2020):
Friday's trading range has been $2.38 (3.13%), that's above the last trading month's daily average range of $1.91. Things look different on the weekly timeframe, where the market's trading range of the last week has been way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for EOG.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. Even with a strong opening the stock closed below the previous day's open and close, forming a bearish Engulfing Candle.
EOG Resources closed back below the 100-day moving average at 75.61. When this moving average was crossed below the last time on February 6th, EOG lost -2.00% on the following trading day. After having been unable to move above 76.04 in the prior session, the market ran into sellers again around the same price level today, failing to move higher than 76.22.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might accelerate should prices move above the nearby swing high at 76.91 where further buy stops could get activated. Selling might speed up should prices move below the close-by swing low at 73.06 where further sell stops could get triggered. With prices trading close to this year's low at 71.27, downside momentum might accelerate should the share break out to new lows for the year.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 100" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for EOG Resources. Out of 51 times, EOG closed higher 60.78% 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 three trading days, showing a win rate of 56.86% with an average market move of 0.55%.