OII finds buyers at key support level
Oceaneering International Inc. (OII) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, OII finished Thursday at 3.85 losing $0.06 (-1.53%), notably underperforming the S&P 500 (6.24%). Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (OII as at Mar 26, 2020):
Thursday's trading range has been $0.69 (17.65%), that's slightly below the last trading month's daily average range of $0.87. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for OII.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
After trading down to 3.43 earlier during the day, the stock bounced off the key technical support level at 3.49 (S1). The failure to close below the support might increase that levels importance as support going forward. When prices bounced off a significant support level the last time on February 21st, OII actually lost -8.10% on the following trading day.
Though the market is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Oceaneering. Out of 400 times, OII closed higher 56.50% 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 54.25% with an average market move of 0.19%.