XEC ends the day indecisive
Cimarex Energy Co (XEC) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
XEC finished the week 12.6% higher at 26.81 after losing $0.29 (-1.07%) today on low volume, significantly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (XEC as at May 22, 2020):
Friday's trading range has been $0.69 (2.57%), that's far below the last trading month's daily average range of $1.64. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for XEC.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Hanging Man. The last time a Bullish Hikkake Pattern showed up on April 6th, XEC actually lost -0.54% on the following trading day.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might accelerate should prices move above the close-by swing high at 27.83 where further buy stops could get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Gap Down" stand out. Its common bearish interpretation has been confirmed for Cimarex Energy. Out of 95 times, XEC closed lower 56.84% 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 58.95% with an average market move of -3.12%.