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Range Resources: Key Technicals Indicate Weakness in the Stock

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Jun. 28 2019, Updated 7:48 a.m. ET

Range Resources

On June 27, Range Resources (RRC) had an implied volatility of 57.8%, which was ~3.2% lower than its 15-day average. On the same day, Chesapeake Energy (CHK) and Antero Resources (AR) had implied volatilities of 77.5% and 59.7%, respectively.

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Price forecast

On June 28–July 4, Range Resources is expected to close between $6.42 and $7.36 68% of the time. The forecast is based on Range Resources’s implied volatility of 57.8% and assumes a normal distribution of prices. On June 27, Range Resources closed at $6.89.

Moving averages

In the last few trading sessions, Range Resources’s stock price has struggled near its 20-day moving average level at $7.17—below the upper limit of our price forecast. On June 27, Range Resources closed 17.4% below its 50-day moving average. On the same day, the stock closed 27.4% and 42.6% below its 100-day and 200-day moving averages, respectively.

On June 27, Range Resources’s 50-day moving average was 30.5% below its 200-day moving average. In technical terms, a stock’s shorter-term moving average staying below the longer-term moving average is bearish for its price.

On the same day, natural gas’s 50-day moving average was 18.2% lower than its 200-day moving average. US crude oil’s 50-day moving average was 0.4% higher than its 200-day moving average. Range Resources’s production mix in natural gas is 69.2%.

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