MTDR closes above its opening price after recovering from early selling pressure
Matador Resources Company (MTDR) Technical Analysis Report for Oct 23, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, MTDR finished the week 4.66% higher at 8.99 after edging higher $0.12 (1.35%) today on low volume, strongly outperforming the S&P 500 (0.34%). Trading up to $0.23 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on October 15th, MTDR actually lost -5.19% on the following trading day. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (MTDR as at Oct 23, 2020):
Friday's trading range has been $0.41 (4.57%), that's far below the last trading month's daily average range of $0.55. 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 MTDR.
Three candlestick patterns are matching today's price action, the Bearish Doji Star and the Northern Doji which are both known as bearish patterns and one neutral pattern, the Doji.
The share managed to close back above the 50-day moving average at 8.97 for the first time since October 9th. After spiking up to 9.15 during the day, Matador Resources found resistance at the 100-day moving average at 9.05.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
As prices are trading close to October's high at 9.56, upside momentum could accelerate should the market mark new highs for the month.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Doji Star" stand out. Its common bearish interpretation has been confirmed for Matador Resources. Out of 10 times, MTDR closed lower 60.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 70.00% with an average market move of -1.51%.