HFC pushes through key technical resistance level
HollyFrontier Corporation (HFC) Technical Analysis Report for Aug 10, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, HFC ended Monday at 26.12 gaining $0.62 (2.43%), notably outperforming the S&P 500 (0.27%). Closing above Friday's high at 25.76, HollyFrontier confirmed its breakout through the previous session high after trading up to $0.57 above it intraday.
Daily Candlestick Chart (HFC as at Aug 10, 2020):
Monday's trading range has been $0.95 (3.7%), that's below the last trading month's daily average range of $1.30. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for HFC.
Buyers managed to take out the key technical resistance level at 26.05 (now S1), which is likely to act as support going forward. The last time this happened on July 6th, HFC actually lost -3.39% on the following trading day.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Buying could speed up should prices move above the close-by swing high at 27.23 where further buy stops might get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed above last periods high" stand out. Its common bullish interpretation has been confirmed for HollyFrontier. Out of 474 times, HFC closed higher 51.27% 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 55.70% with an average market move of 0.83%.