OAS rallies, gaining $0.12 (30.0%) within a single day on high volume
Oasis Petroleum Inc. (OAS) Technical Analysis Report for Sep 15, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, OAS finished Tuesday at 0.52 surging $0.12 (30.0%) on high volume, strongly outperforming the S&P 500 (0.52%). This is the biggest single-day gain in over three months.
Daily Candlestick Chart (OAS as at Sep 15, 2020):
Tuesday's trading range has been $0.15 (34.09%), that's far above the last trading month's daily average range of $0.05. Weekly volatility is also higher, being slightly above 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 White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on April 30th, OAS lost -14.29% on the following trading day.
After spiking up to 0.57 during the day, the stock found resistance at the 20-day moving average at 0.55.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
As prices are trading close to September's high at 0.59, upside momentum could accelerate should the market mark new highs for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Strong Up Move" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Oasis Petroleum. Out of 186 times, OAS closed lower 50.00% 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 59.68% with an average market move of -2.04%.