PSX breaks back above 100-day moving average
Phillips 66 (PSX) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, PSX finished the month -8.13% lower at 71.90 after gaining $3.24 (4.72%) today, significantly outperforming the S&P 500 (1.54%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 69.76, Phillips 66 confirmed its breakout through the previous session high after trading up to $2.59 above it intraday.
Daily Candlestick Chart (PSX as at Jun 30, 2020):
Tuesday's trading range has been $5.09 (7.48%), that's far above the last trading month's daily average range of $3.13. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for PSX.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. Notwithstanding a weak opening the stock managed to close above the prior day's open and close, forming a bullish Engulfing Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on June 18th, PSX actually lost -2.02% on the following trading day.
The share managed to close back above the 100-day moving average at 69.87 for the first time since June 23rd.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might speed up should prices move above the nearby swing high at 75.46 where further buy stops could get activated.
Among the 12 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 Phillips 66. Out of 325 times, PSX closed higher 59.69% 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 52.92% with an average market move of 0.57%.