SWN drops to lowest close since June 26th
Southwestern Energy Company (SWN) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, SWN ended the month -5.08% lower at 2.43 after losing $0.06 (-2.41%) today, significantly underperforming the S&P 500 (0.77%). Today's close at 2.43 marks the lowest recorded closing price since June 26th. Trading $0.10 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 below Thursday's low at 2.47, Southwestern Energy confirmed its breakout through the prior session low after trading up to $0.13 below it intraday.
Daily Candlestick Chart (SWN as at Jul 31, 2020):
Friday's trading range has been $0.26 (10.4%), that's far above the last trading month's daily average range of $0.17. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for SWN.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on July 21st, SWN lost -6.06% on the following trading day.
Prices broke below the key technical support level at 2.44 (now R1), which is likely to act as resistance going forward. After having been unable to move above 2.58 in the previous session, the stock ran into sellers again around the same price level today, missing to move higher than 2.60.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Buying might speed up should prices move above the nearby swing high at 2.62 where further buy stops could get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed below last periods low" stand out. Its common bearish interpretation has been confirmed for Southwestern Energy. Out of 468 times, SWN closed lower 50.21% 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 56.62% with an average market move of -1.18%.