HP runs into sellers again around 19.20
Helmerich & Payne Inc. (HP) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
HP ended Thursday at 18.95 gaining $1.95 (11.47%) on low volume, significantly outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (HP as at Mar 26, 2020):
Thursday's trading range has been $2.04 (11.83%), that's below the last trading month's daily average range of $2.72. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for HP.
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. Additionally, two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
Buyers managed to take out the key technical resistance level at 17.82 (now S1), which is likely to act as support going forward. After having been unable to move above 19.22 in the previous session, the stock ran into sellers again around the same price level today, missing to move higher than 19.20. The last time this happened on March 20th, HP actually gained 7.37% on the following trading day.
Though Helmerich & Payne is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might speed up should prices move above the nearby swing high at 19.22 where further buy stops could get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Up Move" stand out. Its common bullish interpretation has been confirmed for Helmerich & Payne. Out of 295 times, HP closed higher 52.88% 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 55.93% with an average market move of 0.62%.