HP breaks above 20-day moving average for the first time since August 12th
Helmerich & Payne Inc. (HP) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, HP ended Wednesday at 16.64 surging $1.07 (6.87%) on high volume, significantly outperforming the S&P 500 (-0.46%). This is the biggest single-day gain in over a month. The last time we've seen such an unusually strong single-day gain on July 21st, HP actually lost -2.08% on the following trading day. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Tuesday's high at 15.97, the stock confirmed its breakout through the previous session high after trading up to $0.84 above it intraday.
Daily Candlestick Chart (HP as at Sep 16, 2020):
Wednesday's trading range has been $1.26 (8.04%), that's far above the last trading month's daily average range of $0.78. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for HP.
One bullish candlestick pattern matches today's price action, the White Candle.
The share managed to close above the 20-day moving average at 16.30 for the first time since August 12th.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 17.19 where further buy stops might get triggered. As prices are trading close to September's high at 17.19, upside momentum could accelerate should Helmerich & Payne mark new highs for the month.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Helmerich & Payne. Out of 73 times, HP closed higher 61.64% 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 six trading days, showing a win rate of 56.16% with an average market move of -0.13%.