HFC finds support at 20-day moving average
HollyFrontier Corporation (HFC) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, HFC finished the week 13.36% higher at 30.46 after edging lower $0.53 (-1.71%) today on low volume, notably underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (HFC as at May 22, 2020):
Friday's trading range has been $1.12 (3.68%), that's far below the last trading month's daily average range of $2.13. 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 HFC.
Three candlestick patterns are matching today's price action, the Hanging Man and the Northern Doji which are both known as bearish patterns and one neutral pattern, the Doji.
After trading as low as 29.55 during the day, the stock found support at the 20-day moving average at 30.26. The last time this happened on April 15th, HFC actually lost -3.07% on the following trading day. Prices are trading close to the key technical resistance level at 31.41 (R1).
The share 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 32.32 where further buy stops might get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 20" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for HollyFrontier. Out of 55 times, HFC closed lower 60.00% of the time on the next trading day after the market condition occurred.