Here is why Technicals Are a BEAR on Southwestern Energy Company (SWN)

Southwestern Energy Company (NYSE:SWN) fell by -0.51% in Thursday’s trading session from $5.86 to $5.83. The price has fallen in 6 of the last 10 days and is down by -5.05% over the same course of time. There was a decrease in both volume and price. This is usually interpreted as a good sign as traders widely believe falling stock should see declining volume. Traded activity experienced a fall of -1.20 million shares and in total 15.64 M shares exchanged hands for about $91.18 million.

Inside SWN’s Recent Trend

Southwestern Energy Company (SWN) lies in the middle of a wide and weak rising trend in the short term and issued considerable signs about additional rally. Short-term traders are predicted to see a rally of 6.68% over the course of a quarter and, with 90% chance the price will be floating in the range of $5.69 and $6.94 in this timeframe.

Southwestern Energy Company Technical Signals

SWN has witnessed its short term MA triggering a sell signal. Meanwhile, however, the long-term average has generated a buy signal. When the short-run moving average rises above its longer-term trend, a buy signal is created. This is because a short-run moving average that crosses its long-run moving average counterpart is seen as the initiation of an upward trend. On additional rally, the share price will meet short term resistance at around $5.94. On a drop, the stock is likely to find some support over the long run, which begins at $5.82. A buy signal will be generated if it crosses above the short term moving average. Meanwhile, however, a price crossing below the long term moving average will generate a sell signal. Its pivot point low generated buy signal on Tuesday October 10, 2017, which calls for additional surge until the stock forms a new pivot point high. Some other technical concerns emerged as well, putting in risk the future growth of the stock in the next couple of days. The downbeat movement of both volume and price during the recent session is interpreted as a good sign because traders usually believe falling stock should see declining volume.

Southwestern Energy Company (NYSE:SWN) Support And Resistance Levels

In case of pullback, the next support the price will capture from accumulated volume will not be far away from current price at $5.28 and $5.22. In case of gains, the next resistance from accumulated volume will not be far away from today’s level at $5.84, $5.91 and $6.05.

It is important to note, however, that the stock needs to make its way through natural risk while testing a key support level. Once this support is broken, another support level will be to be established at a lower level. Turning back to this stock, Southwestern Energy Company approaches the first support point just current price at $5.28. In case of a break, the next support we will see from accumulated volume is going to be at $5.22 and $5.18. Accumulated volume is going to prevent the price from rising further at $5.84 and this action will lead the price to take a temporary pause or stay muted for a few days.

Southwestern Energy Company (SWN) Risk Assessment

The number of shares changed hands in the stock is good, indicating the interest and low risk associated with it. In the most recent session, the stock price hovered around $0.24 (4.23%) between intraday high and intraday low. Each day in the past 1 week, the average volatility remained at 3.79%.

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