HP finds buyers around 44.68 for the third day in a row
Helmerich & Payne Inc. (HP) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
HP finished the week 6.24% higher at 45.31 after edging lower $0.09 (-0.2%) today, slightly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (HP as at Feb 14, 2020):
Friday's trading range has been $1.00 (2.2%), that's below the last trading month's daily average range of $1.31. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for HP. Prices continued to consolidate within a tight trading range between 44.43 and 45.71 where it has been caught now for the last three trading days.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
Prices are trading close to the key technical support level at 44.40 (S1). The market found buyers again today around 44.68 for the third trading day in a row after having found demand at 44.57 in the previous session and at 44.43 two days ago. The last time this happened on January 15th, HP actually lost -1.76% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 45.71 where further buy stops could get activated. With prices trading close to this year's high at 47.33, upside momentum might accelerate should Helmerich & Payne be able to break out to new highs for the year.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Helmerich & Payne. Out of 514 times, HP closed higher 50.00% 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 55.25% with an average market move of 0.62%.