PSX closes within prior day's range
Phillips 66 (PSX) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, PSX finished the month -13.74% lower at 62.02 after losing $1.07 (-1.7%) today on high volume, notably underperforming the S&P 500 (0.77%) following today's earnings report. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (PSX as at Jul 31, 2020):
PSX reported earnings of $-0.74 per share before today's market open. With analysts having expected an EPS of $-1.0, Phillips 66 topped market expectations by 26.0%. The company's last earnings report was released on May 1, 2020, when Phillips 66 reported earnings of $1.02 per share surpassing market expectations by 61.9%.
Friday's trading range has been $2.51 (4.09%), that's slightly above the last trading month's daily average range of $2.51. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for PSX.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on July 23rd, PSX actually lost -0.18% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
As prices are trading close to July's low at 58.72, downside momentum might speed up should Phillips 66 mark new lows for the month.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Stock Earning Report based market condition "Trading Day post strong Earnings Report" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Phillips 66. Out of 26 times, PSX closed higher 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 long side has been after 10 trading days, showing a win rate of 65.38% with an average market move of 1.06%.