EOG finds buyers again around 45.85
EOG Resources Inc. (EOG) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
EOG finished the month -7.52% lower at 46.85 after gaining $0.27 (0.58%) today, slightly underperforming the S&P 500 (0.77%). The bulls were in full control today, moving the market higher throughout the whole session. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (EOG as at Jul 31, 2020):
Friday's trading range has been $1.03 (2.24%), that's far below the last trading month's daily average range of $1.82. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for EOG.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
After having been unable to move lower than 46.09 in the previous session, the market found buyers again around the same price level today at 45.85. The last time this happened on Wednesday, EOG actually lost -3.96% on the following trading day.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Trading close to May's low at 43.26 we might see further downside momentum if potential sell stops at the level get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for EOG Resources. Out of 81 times, EOG closed lower 51.85% 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 56.79% with an average market move of -1.44%.