HP slips to lowest close since July 9th
Helmerich & Payne Inc. (HP) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, HP ended the month -8.61% lower at 17.83 after edging lower $0.22 (-1.22%) today, notably underperforming the S&P 500 (0.77%). Today's close at 17.83 marks the lowest recorded closing price since July 9th. Trading up to $0.65 lower after the open, Helmerich & Payne managed to reverse during the session as bulls took control ending the day above its opening price. 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 Jul 31, 2020):
Friday's trading range has been $0.78 (4.38%), that's below the last trading month's daily average range of $1.07. 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 HP.
Three candlestick patterns are matching today's price action, the Southern Doji and the Takuri Line which are both known as bullish patterns and one neutral pattern, the Doji. The last time a Takuri Line showed up on April 28th, HP gained 11.80% on the following trading day.
Prices are trading close to the key technical resistance level at 17.95 (R1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Trading close to May's low at 15.94 we could see further downside momentum if potential sell stops at the level get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Doji" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Helmerich & Payne. Out of 149 times, HP closed higher 55.70% 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 eight trading days, showing a win rate of 57.05% with an average market move of -0.07%.