VNOM closes within previous day's range after lackluster session
Viper Energy Partners LP (VNOM) Technical Analysis Report for Sep 13, 2019 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, VNOM finished the week -0.95% lower at 29.16 after losing $0.47 (-1.59%) today, notably underperforming the S&P 500 (-0.07%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (VNOM as at Sep 13, 2019):
Friday's trading range has been $0.68 (2.3%), that's below the last trading month's daily average range of $0.86. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for VNOM.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns.
Prices are trading close to the key technical support level at 28.97 (S1). The market closed back below the 20-day moving average at 29.16 for the first time since September 3rd. When this moving average was crossed below the last time on September 3rd, VNOM actually gained 3.42% on the following trading day. After having been unable to move above 29.88 in the prior session, Viper Energy ran into sellers again around the same price level today, missing to move higher than 29.78.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could accelerate should prices move below the close-by swing low at 28.75 where further sell stops might get triggered.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Short Candle" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Viper Energy. Out of 46 times, VNOM closed higher 58.70% of the time on the next trading day after the market condition occurred.