PXD breaks back above 100-day moving average
Pioneer Natural Resources Company (PXD) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, PXD ended Wednesday at 97.55 gaining $2.92 (3.09%), notably outperforming the S&P 500 (-0.46%). Closing above Tuesday's high at 95.70, the share confirmed its breakout through the prior session high after trading up to $3.62 above it intraday.
Daily Candlestick Chart (PXD as at Sep 16, 2020):
Wednesday's trading range has been $4.22 (4.43%), that's far above the last trading month's daily average range of $2.82. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for PXD.
One bullish candlestick pattern matches today's price action, the White Candle.
Pioneer Natural managed to close back above the 100-day moving average at 96.72 for the first time since September 9th. When this moving average was crossed above the last time on September 9th, PXD actually lost -5.33% on the following trading day. Unable to break through the key technical resistance level at 97.73 (R1), the market closed below it after spiking up to 99.32 earlier during the day. The failure to close above the resistance could increase that levels importance going forward.
Although the stock is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 100" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Pioneer Natural. Out of 75 times, PXD closed lower 64.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after four trading days, showing a win rate of 54.67% with an average market move of -0.23%.