HES closes above its opening price after recovering from early selling pressure
Hess Corporation (HES) Technical Analysis Report for Apr 16, 2019 | by Techniquant Editorial Team
HES ended Tuesday at 66.31 gaining $0.77 (1.17%), strongly outperforming the S&P 500 (0.05%). Today's close at 66.31 marks the highest recorded closing price since October 10, 2018. Trading up to $0.62 lower after the open, Hess managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Monday's high at 66.26, the market confirmed its breakout through the previous session high after trading up to $0.22 above it intraday.
Daily Candlestick Chart (HES as at Apr 16, 2019):
Tuesday's trading range has been $1.82 (2.79%), that's slightly above the last trading month's daily average range of $1.60. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for HES.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. The last time this happened on April 11th, HES gained 4.44% on the following trading day. Additionally, two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern.
The share ran into sellers again today around 66.48 for the third trading day in a row after having found sellers at 66.26 in the prior session and at 66.25 two days ago.
Crossing above the upper Bollinger Band for the first time since April 12th, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 61.82 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 13 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Top Pattern" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Hess. Out of 57 times, HES closed higher 63.16% 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 66.67% with an average market move of 1.54%.