HES Stock Price Slips to 200 Day EMA Amid Favourable Q3 Numbers

Hess Corporation (NYSE: HES) HES stock price slipped to the 200 day EMA post a bearish marubozu candlestick yesterday. Moreover, the HES stock price has slipped below the round mark of $150. Furthermore, the price action shows that HES stock was in an uptrend and reached the supply zone of $165 with a double top pattern. Thereafter, bulls tried to surpass the cluster, but failed, resulting in a sharp throwback.

HES stock price is trading below the 20 day, 50 day and 100 day EMAs and is taking support on the 200 day EMA. Per the options chain, at the strike price of $144, open interest of 25 hundred shares on the call side, whereas 7 hundred shares on the put side (Nasdaq). This option chain activity shows that fresh short positions were added and buyers are trapped.

At the time of writing, HES stock price was $143.29 with an intraday drop of 6.46% showing breakdown in yesterday’s trading session. Moreover, trading volume increased by 2.35% to 8.90 Million while the market cap is $44.013 Billion. Furthermore, analysts have maintained a neutral rating with a yearly target price of $172.48.

Hess Corp is an exploration and production company, which engages in exploration, development, production, transportation, purchase & sale of crude oil, natural gas liquids and natural gas with production operations. It operates through the following segments: Exploration and Production and Midstream. The Exploration and Production segment explores for, develops, produces, purchases and sells crude oil, natural gas liquids and natural gas. The company was founded by Leon Hess in 1920 and is headquartered in New York, NY.

Will HES Stock Hold 200 Day EMA or Extend Selloff?

On the daily charts, HES stock price is trading near the make or break level close to the 200 day EMA support zone. HES stock was impacted due to the Q3 earnings and selling pressure was noted. Although, the numbers were per the estimates, the stock showcased a double top pattern and profit booking was due to the pattern. Furthermore, HES stock slipped below the 61.8% Fibonacci retracement zone and is heading to the 50% level.

The RSI curve showed a steep fall from the overbought zone and slipped below neutrality, forming a negative crossover on the charts. The MACD indicator showed a bearish crossover and red bars on the histogram suggesting a negative outlook.

Summary

HES stock price is close to the 200 day EMA. Furthermore, the short buildup activity has made a strong bearish marubozu candlestick showcasing the panic selling pressure due to the Q3 earnings impact.

Technical Levels

Support Levels: $140 and $135

Resistance Levels: $145 and $150

Disclaimer

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