SM breaks below key technical support level
SM Energy Company (SM) Technical Analysis Report for Jun 14, 2019 | by Techniquant Editorial Team
SM ended the week -12.11% lower at 10.38 after losing $0.52 (-4.77%) today, strongly underperforming the S&P 500 (-0.16%). Today's close at 10.38 marks the lowest recorded closing price since March 2, 2016. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 10.74, SM Energy confirmed its breakout through the prior session low after trading up to $0.42 below it intraday.
Daily Candlestick Chart (SM as at Jun 14, 2019):
Friday's trading range has been $0.78 (7.14%), that's above the last trading month's daily average range of $0.66. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for SM.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Black Candle.
Prices broke below the key technical support level at 10.71 (now R1), which is likely to act as resistance going forward. After having been unable to move above 11.15 in the previous session, the market ran into sellers again around the same price level today, missing to move higher than 11.10. The last time this happened on Tuesday, SM lost -8.67% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Down Move" stand out. Its common bearish interpretation has been confirmed for SM Energy. Out of 320 times, SM closed lower 53.75% of the time on the next trading day after the market condition occurred.