WTI pushes through key technical resistance level
W&T Offshore Inc. (WTI) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, WTI finished Wednesday at 1.92 gaining $0.10 (5.49%) on high volume, notably outperforming the S&P 500 (-0.46%). Closing above Tuesday's high at 1.91, the market confirmed its breakout through the prior session high after trading up to $0.10 above it intraday.
Daily Candlestick Chart (WTI as at Sep 16, 2020):
Wednesday's trading range has been $0.17 (9.09%), that's far above the last trading month's daily average range of $0.11. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for WTI.
Buyers managed to take out the key technical resistance level at 1.91 (now S1), which is likely to act as support going forward. The last time this happened on August 5th, WTI actually lost -5.93% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for W&T Offshore. Out of 135 times, WTI closed higher 50.37% 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 53.33% with an average market move of 2.07%.