GLNG pushes through key technical resistance level
Golar LNG Limited (GLNG) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
GLNG finished Thursday at 8.05 gaining $0.19 (2.42%) on low volume, notably underperforming the S&P 500 (6.24%). Trading up to $0.47 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. 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 (GLNG as at Mar 26, 2020):
Thursday's trading range has been $0.70 (8.79%), that's below the last trading month's daily average range of $1.12. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for GLNG.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Buyers managed to take out the key technical resistance level at 8.04 (now S1), which is likely to act as support going forward. The last time this happened on Tuesday, GLNG actually lost -5.30% on the following trading day.
Although the market 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 speed up should prices move above the nearby swing high at 8.69 where further buy stops might get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Golar LNG. Out of 758 times, GLNG closed higher 49.74% 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 54.88% with an average market move of 0.47%.