HES runs into sellers again around 49.29
Hess Corporation (HES) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
HES ended the month -5.02% lower at 49.21 after gaining $1.67 (3.51%) today, strongly outperforming the S&P 500 (0.77%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 49.04, Hess confirmed its breakout through the prior session high after trading up to $0.25 above it intraday.
Daily Candlestick Chart (HES as at Jul 31, 2020):
Friday's trading range has been $2.33 (4.94%), that's slightly above the last trading month's daily average range of $2.28. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for HES.
Regardless of a weak opening the market managed to close above the previous day's open and close, forming a bullish Engulfing Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
The stock managed to close back above the 20-day moving average at 48.70. When this moving average was crossed above the last time on Wednesday, HES actually lost -4.92% on the following trading day. Prices are trading close to the key technical resistance level at 49.79 (R1). After having been unable to move above 49.04 in the prior session, the share ran into sellers again around the same price level today, missing to move higher than 49.29.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
As prices are trading close to July's high at 52.90, upside momentum might accelerate should HES mark new highs for the month.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Engulfing Candle" stand out. Its common bullish interpretation has been confirmed for Hess. Out of 62 times, HES closed higher 66.13% 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 62.90% with an average market move of 1.00%.