EOG dominated by bulls lifting the market higher throughout the day
EOG Resources Inc. (EOG) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, EOG finished the month -0.61% lower at 50.66 after gaining $1.01 (2.03%) today on low volume, slightly outperforming the S&P 500 (1.54%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 49.85, the market confirmed its breakout through the prior session high after trading up to $1.16 above it intraday.
Daily Candlestick Chart (EOG as at Jun 30, 2020):
Tuesday's trading range has been $2.23 (4.55%), that's slightly below the last trading month's daily average range of $2.52. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for EOG.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on June 5th, EOG actually gained 4.72% on the following trading day.
The stock managed to close back above the 100-day moving average at 50.40 for the first time since June 23rd. Prices are trading close to the key technical resistance level at 51.33 (R1). EOG Resources found buyers again today around 48.78 for the third trading day in a row after having found demand at 48.43 in the previous session and at 48.41 two days ago.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling might speed up should prices move below the nearby swing low at 48.01 where further sell stops could get triggered.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior two Lows" stand out. Its common bullish interpretation has been confirmed for EOG Resources. Out of 80 times, EOG closed higher 58.75% 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 56.25% with an average market move of 0.29%.