WLL closes lower for the 2nd day in a row
Whiting Petroleum Corporation (WLL) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, WLL finished the month 61.43% higher at 1.13 after losing $0.07 (-5.83%) today, significantly underperforming the S&P 500 (1.54%). Today's close at 1.13 marks the lowest recorded closing price since June 4th. Closing below Monday's low at 1.16, Whiting Petroleum confirmed its breakout through the prior session low after trading up to $0.07 below it intraday.
Daily Candlestick Chart (WLL as at Jun 30, 2020):
Tuesday's trading range has been $0.10 (8.47%), that's below the last trading month's daily average range of $0.35. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for WLL.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on June 24th, WLL actually gained 8.62% on the following trading day.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might speed up should prices move above the close-by swing high at 1.38 where further buy stops could get activated. Selling might accelerate should prices move below the nearby swing low at 1.03 where further sell stops could get triggered. Further selling might move prices lower should the market test May's close-by low at 0.69.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Its common bearish interpretation has been confirmed for Whiting Petroleum. Out of 320 times, WLL closed lower 51.25% 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 55.00% with an average market move of -0.16%.