Rose 10.9% in 3 Days, is the Trend Sustainable?

Based in Texas, Southwestern Energy Co.(NYSE: SWN) is a holding company. It explores, develops, and produces natural gas, oil, and NGLs. The company operates through its Exploration and Production (E&P) and Marketing segments.

The company has made a tremendous recovery after Covid. Its sales have grown with a Compound annual growth rate (CAGR) of 154% after 2020. Along with the growing revenue, the company has also kept a positive net income with a margin of 18% in 2022. The earnings per share have grown from -5.42 to $5.01 over the past year.

Technical Analysis and Prediction of the SWN Stock Price

At the press time, the SWN stock price has risen above the pivot level of $6.87, which has now become its support. The immediate resistance as per the current price action is $8.1,3. The second resistance level is at $9.07, which will be active once the bulls sustain above the immediate one.

Apart from the support and resistance levels, the indicators are giving some valuable insights for the near future price action. The 50-day exponential moving average line has made a bullish crossover with the 150-day exponential moving average line back in mid-July. Currently, the 50-day EMA is at $6.49, while the 150-day EMA is at $6.11, which is an indication that the bullish trend has continued.

Indicators and Prediction

Moreover, the Relative Strength Index (RSI) is in the oversold zone of 68, which means that the bulls are currently experiencing immense selling pressure. The simple moving average line of RSI is presently at 56, which indicates a significant gap between the two. As such, the stock price is likely to experience some bearish moves as the RSI corrects itself.

The SWN stock price prediction will be bearish as the RSI graph suggests, some correction can be seen in the short term. Now, the major factor here is whether the bulls will sustain above the current support level. If it falls below the uptrend will be over and the investors will exit. It will cause the share price to reach its 2nd support of $5.87.

Conclusion

Southwestern Energy Co.(NYSE: SWN) is engaged in the exploration of natural gas, oil, NGLs, etc. The company has made a remarkable comeback after the COVID-19 pandemic. Its revenues are growing more than 2 folds each year. At present, the stock has risen above resistance, but the prediction is bearish.

Technical Levels

Support Levels: $6.87 and $5.87
Resistance Levels: $8.13 and $9.07

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks or related indexes comes with a risk of financial loss.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing