WES closes lower for the 2nd day in a row
Western Gas Partners LP Limited Partner Interests (WES) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, WES ended Thursday at 3.80 losing $0.28 (-6.86%), significantly underperforming the S&P 500 (6.24%). Trading $0.19 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Wednesday's low at 3.87, the market confirmed its breakout through the prior session low after trading up to $0.07 below it intraday.
Daily Candlestick Chart (WES as at Mar 26, 2020):
Thursday's trading range has been $0.48 (11.74%), that's far below the last trading month's daily average range of $1.31. 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 WES.
Two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns. The last time a Bearish Short Candle showed up on February 6th, WES lost -2.85% on the following trading day.
The stock was bought again around 3.80 after having seen lows at 3.87, 3.90 and 3.85 in the last three trading sessions. Obviously there is something going on at that level.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous two Lows" stand out. Its common bullish interpretation has been confirmed for Western Gas. Out of 164 times, WES closed higher 51.22% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 56.10% with an average market move of 0.56%.