HES dominated by bulls lifting the market higher throughout the day
Hess Corporation (HES) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, HES ended the month 9.14% higher at 51.81 after gaining $1.87 (3.74%) today, strongly outperforming the S&P 500 (1.54%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 49.96, the market confirmed its breakout through the previous session high after trading up to $2.23 above it intraday.
Daily Candlestick Chart (HES as at Jun 30, 2020):
Tuesday's trading range has been $2.88 (5.84%), that's above the last trading month's daily average range of $2.49. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for HES.
Three candlestick patterns are matching today's price action, the Bullish Belt-hold and the White Candle which are both known as bullish patterns and one bearish pattern, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on April 22nd, HES actually gained 5.82% on the following trading day.
After spiking up to 52.19 during the day, the share found resistance at the 20-day moving average at 52.01.
Hess shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could accelerate should prices move above the nearby swing high at 53.73 where further buy stops might get triggered.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Hikkake Pattern" stand out. Its common bearish interpretation has been confirmed for Hess. Out of 104 times, HES closed lower 62.50% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 59.62% with an average market move of -2.08%.