WTI slips to lowest close since July 9th
W&T Offshore Inc. (WTI) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, WTI finished the month -0.88% lower at 2.26 after edging lower $0.01 (-0.44%) today on low volume, significantly underperforming the S&P 500 (0.77%). Today's close at 2.26 marks the lowest recorded closing price since July 9th. Trading up to $0.02 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. 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 (WTI as at Jul 31, 2020):
Friday's trading range has been $0.06 (2.7%), that's far below the last trading month's daily average range of $0.13. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for WTI.
Three candlestick patterns are matching today's price action, the Bullish Short Candle, the Tweezer Bottom and the White Candle which are known as bullish patterns. The last time a White Candle showed up on July 21st, WTI actually lost -6.77% on the following trading day.
After having been unable to move lower than 2.20 in the previous session, the stock found buyers again around the same price level today at 2.20.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
As prices are trading close to July's low at 2.11, downside momentum might accelerate should W&T Offshore mark new lows for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for W&T Offshore. Out of 72 times, WTI closed lower 56.94% 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 55.56% with an average market move of -1.22%.