HP closes lower for the 4th day in a row
Helmerich & Payne Inc. (HP) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, HP ended the week 3.76% higher at 18.21 after losing $0.44 (-2.36%) today, strongly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (HP as at May 22, 2020):
Friday's trading range has been $0.72 (3.92%), that's far below the last trading month's daily average range of $1.47. 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.
One bearish candlestick pattern matches today's price action, the Hanging Man.
After trading down to 17.77 earlier during the day, the stock bounced off the key technical support level at 17.87 (S1). The failure to close below the support might increase that levels significance as support going forward. After having been unable to move lower than 17.86 in the previous session, the market found buyers again around the same price level today at 17.77. The last time this happened on Wednesday, HP actually lost -0.64% on the following trading day.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Selling could accelerate should prices move below the nearby swing low at 16.53 where further sell stops might get triggered. As prices are trading close to May's low at 15.94, downside momentum could speed up should the share mark new lows for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) below 20" stand out. Its common bullish interpretation has been confirmed for Helmerich & Payne. Out of 273 times, HP closed higher 54.58% 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 nine trading days, showing a win rate of 52.75% with an average market move of 0.26%.