SWN closes above its opening price after recovering from early selling pressure
Southwestern Energy Company (SWN) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, SWN finished the month -14.95% lower at 2.56 after gaining $0.03 (1.19%) today, slightly underperforming the S&P 500 (1.54%). Trading up to $0.10 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on June 9th, SWN actually lost -7.49% on the following trading day. 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 Jun 30, 2020):
Tuesday's trading range has been $0.18 (7.17%), that's below the last trading month's daily average range of $0.26. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for SWN. Prices continued to consolidate within a tight trading range between 2.37 and 2.59 where it has been caught now for the last three trading days.
After having been unable to move lower than 2.40 in the prior session, the share found buyers again around the same price level today at 2.41.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Selling could accelerate should prices move below the close-by swing low at 2.37 where further sell stops might get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near high of period" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Southwestern Energy. Out of 510 times, SWN closed lower 52.35% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 56.47% with an average market move of -0.76%.