XEC surges, gaining $1.77 (7.19%) within a single day on high volume
Cimarex Energy Co (XEC) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
XEC finished Wednesday at 26.39 surging $1.77 (7.19%) on high volume, significantly outperforming the S&P 500 (-0.46%). This is the biggest single-day gain in over a month. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Tuesday's high at 25.49, the share confirmed its breakout through the prior session high after trading up to $1.30 above it intraday.
Daily Candlestick Chart (XEC as at Sep 16, 2020):
Wednesday's trading range has been $2.08 (8.35%), that's far above the last trading month's daily average range of $1.28. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for XEC.
One bullish candlestick pattern matches today's price action, the White Candle.
After spiking up to 26.79 during the day, the market found resistance at the 50-day moving average at 26.64. Cimarex Energy found buyers again today around 24.71 for the third trading day in a row after having found demand at 24.49 in the previous session and at 24.53 two days ago. The last time this happened on September 1st, XEC actually lost -6.12% on the following trading day.
Though the stock is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed above last periods high" stand out. Its common bullish interpretation has been confirmed for Cimarex Energy. Out of 443 times, XEC closed higher 50.34% 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 55.53% with an average market move of 0.65%.