EOG closes within prior day's range after lackluster session
EOG Resources Inc. (EOG) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, EOG finished the week 9.65% higher at 52.28 after edging lower $0.04 (-0.08%) today on low volume, slightly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading up to $1.26 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (EOG as at May 22, 2020):
Friday's trading range has been $1.43 (2.74%), that's far below the last trading month's daily average range of $2.45. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for EOG. Prices continued to consolidate within a tight trading range between 50.01 and 53.56 where it has been caught now for the whole last trading week.
Four candlestick patterns are matching today's price action, the Dragonfly Doji which is known as bullish pattern, two bearish patterns, the Hanging Man and the Northern Doji and one neutral pattern, the Doji. The last time a Northern Doji showed up on April 3rd, EOG lost -1.15% on the following trading day.
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 close-by swing high at 53.56 where further buy stops could get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Dragonfly Doji" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for EOG Resources. Out of 2 times, EOG closed lower 50.00% 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 10 trading days, showing a win rate of 100.00% with an average market move of -6.45%.