HP closes higher for the 2nd day in a row
Helmerich & Payne Inc. (HP) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, HP finished the month -3.08% lower at 19.51 after gaining $0.36 (1.88%) today, slightly outperforming the S&P 500 (1.54%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 19.48, the market confirmed its breakout through the prior session high after trading up to $0.12 above it intraday.
Daily Candlestick Chart (HP as at Jun 30, 2020):
Tuesday's trading range has been $0.92 (4.88%), that's below the last trading month's daily average range of $1.56. Weekly volatility is also lower, being way 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 18.44 and 20.39 where it has been caught now for the whole last trading week.
Notwithstanding a weak opening the stock managed to close above the previous day's open and close, forming a bullish Engulfing Candle. Additionally, three candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns and one bearish pattern, the Bearish Hikkake Pattern. The last time a Bullish Short Candle showed up on June 3rd, HP gained 9.94% on the following trading day.
After having been unable to move lower than 18.62 in the prior session, the share found buyers again around the same price level today at 18.68.
Helmerich & Payne shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling could speed up should prices move below the close-by swing low at 18.44 where further sell stops might get triggered.
Among the 12 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 Helmerich & Payne. Out of 57 times, HP closed higher 59.65% 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 56.14% with an average market move of 0.50%.