PXD runs into sellers again around 74.75
Pioneer Natural Resources Company (PXD) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
PXD ended Thursday at 74.34 gaining $2.03 (2.81%), significantly underperforming the S&P 500 (6.24%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (PXD as at Mar 26, 2020):
Thursday's trading range has been $3.36 (4.64%), that's far below the last trading month's daily average range of $8.22. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for PXD.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
Prices are trading close to the key technical resistance level at 75.41 (R1). After having been unable to move above 75.41 in the prior session, the stock ran into sellers again around the same price level today, missing to move higher than 74.75. The last time this happened on March 16th, PXD lost -3.67% on the following trading day.
While the market 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 nearby swing high at 75.41 where further buy stops might get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Up Close near high of period" stand out. Its common bullish interpretation has been confirmed for Pioneer Natural. Out of 539 times, PXD closed higher 50.09% 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 three trading days, showing a win rate of 55.84% with an average market move of 0.13%.