EOG dominated by bulls lifting the market higher throughout the day
EOG Resources Inc. (EOG) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, EOG ended Thursday at 39.53 losing $0.16 (-0.4%), strongly underperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (EOG as at Mar 26, 2020):
Thursday's trading range has been $4.08 (11.3%), that's slightly below the last trading month's daily average range of $4.49. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for EOG. Prices continued to consolidate within a tight trading range between 35.72 and 41.57 where it has been caught now for the last three trading days.
One bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical support level at 36.09 (S1). After having been unable to move lower than 36.70 in the previous session, EOG Resources found buyers again around the same price level today at 36.12. The last time this happened on Monday, EOG gained 15.23% on the following trading day.
While the stock is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could accelerate should prices move above the nearby swing high at 41.57 where further buy stops might get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for EOG Resources. Out of 305 times, EOG closed higher 53.44% 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 10 trading days, showing a win rate of 52.46% with an average market move of 0.23%.