HFC breaks back above 20-day moving average
HollyFrontier Corporation (HFC) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
HFC ended the month -5.82% lower at 27.50 after gaining $0.71 (2.65%) today on high volume, 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 27.31, the share confirmed its breakout through the prior session high after trading up to $0.25 above it intraday.
Daily Candlestick Chart (HFC as at Jul 31, 2020):
Friday's trading range has been $1.11 (4.19%), that's slightly below the last trading month's daily average range of $1.25. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for HFC. Prices continued to consolidate within a tight trading range between 25.66 and 27.87 where it has been caught now for the whole last trading week.
Despite a weak opening HollyFrontier 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 27.31. When this moving average was crossed above the last time on Wednesday, HFC actually lost -3.42% on the following trading day. Prices are trading close to the key technical resistance level at 27.86 (R1).
The market shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying might accelerate should prices move above the close-by swing high at 27.87 where further buy stops could get triggered.
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 HollyFrontier. Out of 60 times, HFC closed higher 55.00% of the time on the next trading day after the market condition occurred.