MRO falls to lowest close since April 5, 2016
Marathon Oil Corporation (MRO) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, MRO ended the week -8.9% lower at 10.64 after tanking $0.47 (-4.23%) today, significantly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 10.64 marks the lowest recorded closing price since April 5, 2016. The bears were in full control today, moving the market lower throughout the whole session. Ending with a weak close near the low of the day sets a bearish note for the next session.
Daily Candlestick Chart (MRO as at Feb 14, 2020):
Friday's trading range has been $0.60 (5.39%), that's far above the last trading month's daily average range of $0.35. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for MRO.
One bearish candlestick pattern matches today's price action, the Black Candle.
After having been unable to move lower than 10.64 in the previous session, Marathon Oil found buyers again around the same price level today at 10.59. The last time this happened on Wednesday, MRO actually lost -4.31% on the following trading day.
Crossing below the lower Bollinger Band for the first time since January 27th, prices have shown unusually strong downward momentum in the short-term. This could either indicate a potential selling climax after which prices might head back up towards the mean of the Bollinger Bands at 11.82 or signal the beginning of a strong momentum breakout leading to even lower prices.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(14) below 30" stand out. Its common bullish interpretation has been confirmed for Marathon Oil. Out of 39 times, MRO closed higher 58.97% 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 56.41% with an average market move of -0.21%.