MRO closes above its opening price after recovering from early selling pressure
Marathon Oil Corporation (MRO) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, MRO finished the month -10.29% lower at 5.49 after edging lower $0.02 (-0.36%) today, strongly underperforming the S&P 500 (0.77%). Trading up to $0.12 lower after the open, Marathon Oil 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 (MRO as at Jul 31, 2020):
Friday's trading range has been $0.18 (3.28%), that's far below the last trading month's daily average range of $0.29. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for MRO.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on May 22nd, MRO gained 2.38% on the following trading day.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Buying might accelerate should prices move above the nearby swing high at 5.74 where further buy stops could get triggered. As prices are trading close to July's low at 4.97, downside momentum might speed up should the stock mark new lows for the month.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Spinning Top" stand out. Its common bullish interpretation has been confirmed for Marathon Oil. Out of 181 times, MRO closed higher 51.38% 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 52.49% with an average market move of 1.12%.