QEP finds buyers again around 0.76
QEP Resources Inc. (QEP) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
QEP finished the week 8.22% higher at 0.79 after gaining $0.01 (1.28%) today, strongly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. 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 (QEP as at May 22, 2020):
Friday's trading range has been $0.04 (5.19%), that's far below the last trading month's daily average range of $0.11. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for QEP. Prices continued to consolidate within a tight trading range between 0.75 and 0.88 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the Tweezer Top which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern.
Buyers managed to take out the key technical resistance level at 0.78 (now S1), which is likely to act as support going forward. The last time this happened on April 22nd, QEP gained 30.23% on the following trading day. After having been unable to move lower than 0.75 in the previous session, QEP Resources found buyers again around the same price level today at 0.76.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could accelerate should prices move above the nearby swing high at 0.88 where further buy stops might get triggered. Selling could speed up should prices move below the close-by swing low at 0.75 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 "Tweezer Top" stand out. Its common bullish interpretation has been confirmed for QEP Resources. Out of 14 times, QEP closed higher 71.43% 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 71.43% with an average market move of 7.13%.