SWN closes below its opening price unable to hold early session gains
Southwestern Energy Company (SWN) Technical Analysis Report for Aug 15, 2019 | by Techniquant Editorial Team
Moving lower for the 5th day in a row, SWN finished Thursday at 1.72 edging lower $0.01 (-0.58%) on low volume, underperforming the S&P 500 (0.25%). Today's close at 1.72 marks the lowest recorded closing price since May 2, 2003. Trading $0.04 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (SWN as at Aug 15, 2019):
Thursday's trading range has been $0.08 (4.62%), that's far below the last trading month's daily average range of $0.17. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SWN.
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. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Prices are trading close to the key technical support level at 1.68 (S1). After having been unable to move lower than 1.68 in the previous session, Southwestern Energy found buyers again around the same price level today at 1.69. The last time this happened on Tuesday, SWN actually lost -3.89% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could speed up should prices move below the close-by swing low at 1.68 where further sell stops might get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "5 Consecutive Lower Closes" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Southwestern Energy. Out of 42 times, SWN closed higher 57.14% of the time on the next trading day after the market condition occurred.