MTDR slumps, losing $1.06 (-5.71%) within a single day
Matador Resources Company (MTDR) Technical Analysis Report for Jul 17, 2019 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, MTDR finished Wednesday at 17.52 tanking $1.06 (-5.71%), significantly underperforming the S&P 500 (-0.65%). This is the biggest single-day loss in over a month. Today's close at 17.52 marks the lowest recorded closing price since June 17th. 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 (MTDR as at Jul 17, 2019):
Wednesday's trading range has been $1.02 (5.5%), that's far above the last trading month's daily average range of $0.74. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for MTDR.
Three candlestick patterns are matching today's price action, the Bearish Closing Marubozu, the Bearish Marubozu and the Black Candle which are known as bearish patterns.
The market closed below the 50-day moving average at 18.49 for the first time since June 25th. When this moving average was crossed below the last time on May 22nd, MTDR lost -9.41% on the following trading day.
Crossing below the lower Bollinger Band for the first time since May 31st, 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 18.89 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 13 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Marubozu" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Matador Resources. Out of 1 times, MTDR closed higher 100.00% 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 100.00% with an average market move of 5.53%.