OAS dominated by bears dragging the market lower throughout the day
Oasis Petroleum Inc. (OAS) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, OAS ended Thursday at 0.34 losing $0.03 (-8.11%), notably underperforming the S&P 500 (6.24%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Wednesday's low at 0.35, the stock confirmed its breakout through the previous session low after trading up to $0.02 below it intraday.
Daily Candlestick Chart (OAS as at Mar 26, 2020):
Thursday's trading range has been $0.04 (10.81%), that's below the last trading month's daily average range of $0.18. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for OAS.
Two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns.
Prices are trading close to the key technical resistance level at 0.41 (R1). After having been unable to move above 0.38 in the prior session, the share ran into sellers again around the same price level today, failing to move higher than 0.37. The last time this happened on Tuesday, OAS lost -2.63% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 0.41 where further buy stops could get activated. Selling might speed up should prices move below the nearby swing low at 0.32 where further sell stops could get triggered. With prices trading close to this year's low at 0.25, downside momentum might accelerate should Oasis Petroleum break out to new lows for the year.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Short Candle" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Oasis Petroleum. Out of 78 times, OAS closed higher 57.69% of the time on the next trading day after the market condition occurred.