HCC pushes through Tuesday's high
Warrior Met Coal Inc. (HCC) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 6th day in a row, HCC ended Wednesday at 19.36 gaining $0.35 (1.84%) on high volume, significantly outperforming the S&P 500 (-0.46%). Today's close at 19.36 marks the highest recorded closing price since February 19th. Closing above Tuesday's high at 19.25, the stock confirmed its breakout through the previous session high after trading up to $0.30 above it intraday.
Daily Candlestick Chart (HCC as at Sep 16, 2020):
Wednesday's trading range has been $0.78 (4.1%), that's slightly above the last trading month's daily average range of $0.71. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for HCC.
One bearish candlestick pattern matches today's price action, the Last Engulfing Top Pattern. The last time a Last Engulfing Top Pattern showed up on September 10th, HCC actually gained 7.71% on the following trading day.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day while might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 16.26.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Top Pattern" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Warrior Met. Out of 15 times, HCC closed higher 66.67% 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 five trading days, showing a win rate of 66.67% with an average market move of 0.79%.