SWN plunges -10.22% on low volume
Southwestern Energy Company (SWN) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving lower for the 5th day in a row, SWN ended Thursday at 1.67 tanking $0.19 (-10.22%) on low volume, significantly underperforming the S&P 500 (6.24%). This is the biggest single-day loss in over two months. The last time we've seen such an unusually strong single-day loss on March 11th, SWN actually gained 13.85% on the following trading day. Closing below Wednesday's low at 1.78, the stock confirmed its breakout through the previous session low after trading up to $0.16 below it intraday.
Daily Candlestick Chart (SWN as at Mar 26, 2020):
Thursday's trading range has been $0.35 (18.52%), that's slightly below the last trading month's daily average range of $0.35. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for SWN.
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.
After trading as low as 1.62 during the day, Southwestern Energy found support at the 50-day moving average at 1.65. The market closed back below the 20-day moving average at 1.67 for the first time since March 11th.
Although the share is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the 10 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 59.52% of the time on the next trading day after the market condition occurred.