PSX rallies 4.24% on high volume
Phillips 66 (PSX) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
PSX ended Wednesday at 60.51 surging $2.46 (4.24%) on high volume, significantly outperforming the S&P 500 (-0.46%). This is the biggest single-day gain in over three weeks. The last time we've seen such an unusually strong single-day gain on August 24th, PSX actually lost -3.17% on the following trading day. Closing above Tuesday's high at 59.54, the stock confirmed its breakout through the previous session high after trading up to $2.19 above it intraday.
Daily Candlestick Chart (PSX as at Sep 16, 2020):
Wednesday's trading range has been $3.62 (6.16%), that's far above the last trading month's daily average range of $2.11. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for PSX.
Phillips 66 managed to close above the 20-day moving average at 59.59 for the first time since August 24th.
Although the share is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could speed up should prices move above the close-by swing high at 61.73 where further buy stops might get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for Phillips 66. Out of 198 times, PSX closed higher 56.06% 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 54.04% with an average market move of 0.76%.