HES still stuck within tight trading range
Hess Corporation (HES) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, HES ended the week 6.88% higher at 47.10 after edging lower $0.14 (-0.3%) today on low volume, underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading up to $0.38 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (HES as at May 22, 2020):
Friday's trading range has been $0.93 (1.99%), that's far below the last trading month's daily average range of $2.74. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for HES. Prices continued to consolidate within a tight trading range between 45.76 and 50.05 where it has been caught now for the whole last trading week.
Prices are trading close to the key technical resistance level at 48.70 (R1). After having been unable to move lower than 46.51 in the prior session, the stock found buyers again around the same price level today at 46.26. The last time this happened on May 11th, HES actually lost -4.94% on the following trading day.
Hess shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might speed up should prices move above the close-by swing high at 50.05 where further buy stops could get activated. Selling might accelerate should prices move below the nearby swing low at 45.76 where further sell stops could get triggered. Further buying might move prices higher should the market test April's close-by high at 50.40.
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. Though it is usually interpreted as neutral, it has actually shown to be bullish for Hess. Out of 688 times, HES closed higher 54.07% 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 54.65% with an average market move of 0.33%.