XOG dominated by bears dragging the market lower throughout the day
Extraction Oil & Gas Inc. (XOG) Technical Analysis Report for Jul 17, 2019 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, XOG ended Wednesday at 3.88 tanking $0.29 (-6.95%), notably underperforming the S&P 500 (-0.65%). This is the biggest single-day loss in over a month. Today's close at 3.88 marks the lowest recorded closing price since June 19th. The bears were in full control today, moving the market lower throughout the whole session. Closing below Tuesday's low at 4.11, Extraction Oil confirmed its breakout through the previous session low after trading up to $0.27 below it intraday.
Daily Candlestick Chart (XOG as at Jul 17, 2019):
Wednesday's trading range has been $0.42 (10.0%), that's far above the last trading month's daily average range of $0.27. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for XOG.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on July 11th, XOG actually gained 4.65% on the following trading day.
The market closed back below the 50-day moving average at 3.94 for the first time since July 8th.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the 13 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R2" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Extraction Oil. Out of 3 times, XOG closed higher 100.00% 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 100.00% with an average market move of 8.25%.