SWN stuck within tight trading range
Southwestern Energy Company (SWN) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
SWN finished Wednesday at 2.45 gaining $0.05 (2.08%) on high volume, notably outperforming the S&P 500 (-0.46%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (SWN as at Sep 16, 2020):
Wednesday's trading range has been $0.12 (4.96%), that's below the last trading month's daily average range of $0.14. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for SWN. Prices continued to consolidate within a tight trading range between 2.37 and 2.52 where it has been caught now for the last three trading days.
After moving lower in the previous session, the market managed to close higher but below the prior day's open, forming a bullish Harami Candle. The last time this candlestick pattern showed up on September 9th, SWN actually lost -5.86% on the following trading day.
After trading down to 2.40 earlier during the day, Southwestern Energy bounced off the key technical support level at 2.41 (S1). The failure to close below the support might increase that levels significance as support going forward.
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 nearby swing low at 2.37 where further sell stops might get activated.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. While it is usually interpreted as neutral, it has actually shown to be bearish for Southwestern Energy. Out of 749 times, SWN closed lower 51.13% 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 53.54% with an average market move of -0.72%.