PXD runs into sellers again around 97.04
Pioneer Natural Resources Company (PXD) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
PXD finished the month -0.8% lower at 96.92 after gaining $1.07 (1.12%) today, slightly outperforming the S&P 500 (0.77%). The bulls were in full control today, moving the market higher throughout the whole session. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (PXD as at Jul 31, 2020):
Friday's trading range has been $2.54 (2.68%), that's below the last trading month's daily average range of $3.21. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for PXD.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Notwithstanding a weak opening Pioneer Natural managed to close above the previous day's open and close, forming a bullish Engulfing Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical resistance level at 99.28 (R1). After having been unable to move above 97.07 in the prior session, the market ran into sellers again around the same price level today, missing to move higher than 97.04. The last time this happened on Wednesday, PXD lost -2.73% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could accelerate should prices move below the close-by swing low at 93.93 where further sell stops might get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Engulfing Candle" stand out. Its common bullish interpretation has been confirmed for Pioneer Natural. Out of 61 times, PXD closed higher 65.57% 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 54.10% with an average market move of 0.63%.