FANG closes higher for the 2nd day in a row
Diamondback Energy Inc. (FANG) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, FANG ended the month -1.78% lower at 41.82 after gaining $0.39 (0.94%) today, underperforming the S&P 500 (1.54%). Trading up to $0.95 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on June 25th, FANG actually lost -5.71% on the following trading day. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (FANG as at Jun 30, 2020):
Tuesday's trading range has been $2.32 (5.69%), that's below the last trading month's daily average range of $3.14. 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 FANG. Prices continued to consolidate within a tight trading range between 39.84 and 42.98 where it has been caught now for the last three trading days.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar.
After having been unable to move lower than 39.92 in the previous session, Diamondback Energy found buyers again around the same price level today at 39.84.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Outside Bar" stand out. Its common bullish interpretation has been confirmed for Diamondback Energy. Out of 104 times, FANG closed higher 58.65% 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 51.92% with an average market move of 1.69%.