QEP dominated by bears dragging the market lower throughout the day
QEP Resources Inc. (QEP) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, QEP ended the week -6.87% lower at 2.71 after losing $0.15 (-5.24%) today on low volume, strongly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 2.71 marks the lowest recorded closing price ever. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 2.83, the market confirmed its breakout through the prior session low after trading up to $0.13 below it intraday.
Daily Candlestick Chart (QEP as at Feb 14, 2020):
Friday's trading range has been $0.22 (7.59%), that's slightly above the last trading month's daily average range of $0.20. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for QEP.
Two candlestick patterns are matching today's price action, the Last Engulfing Bottom Pattern which is known as bullish pattern and one bearish pattern, the Black Candle. The last time a Last Engulfing Bottom Pattern showed up on Tuesday, QEP gained 4.69% on the following trading day.
Prices broke below the key technical support level at 2.77 (now R1), which is likely to act as resistance going forward.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
2019's low at 2.58 is within reach and we could see further downside momentum should QEP Resources break out beyond.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Bottom Pattern" stand out. Its common bullish interpretation has been confirmed for QEP Resources. Out of 65 times, QEP closed higher 56.92% 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 six trading days, showing a win rate of 56.92% with an average market move of 1.34%.