MRO closes within previous day's range after lackluster session
Marathon Oil Corporation (MRO) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, MRO ended the week 4.99% higher at 5.89 after losing $0.05 (-0.84%) today on low volume, strongly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading up to $0.13 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. 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 (MRO as at May 22, 2020):
Friday's trading range has been $0.18 (3.06%), that's far below the last trading month's daily average range of $0.41. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for MRO. Prices continued to consolidate within a tight trading range between 5.75 and 6.11 where it has been caught now for the last three trading days.
Two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Hanging Man. The last time a Hanging Man showed up on April 13th, MRO lost -3.19% on the following trading day.
After trading down to 5.75 earlier during the day, Marathon Oil bounced off the key technical support level at 5.81 (S1). The failure to close below the support might increase that levels importance as support going forward.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could speed up should prices move above the close-by swing high at 6.11 where further buy stops might get triggered. Further buying could move prices higher should the market test April's nearby high at 6.34.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hanging Man" stand out. Its common bearish interpretation has been confirmed for Marathon Oil. Out of 62 times, MRO closed lower 58.06% of the time on the next trading day after the market condition occurred.