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Southwestern Energy Co (SWN) Possibly to Extend Bearish Trend

Southwestern Energy $SWN has been in a sideways consolidation range roughly between $5.00 and $6.45. It looked like it was completing a price bottom in November when price breached range resistance. However price then returned to almost the range support, a sign that the November rally was a false breakout.

SWN Daily Chart

(click to enlarge)

Bearish Signs:
- The false breakout in November could be a sign of a bearish continuation.
- The fact that price held under the 200-day simple moving average (SMA) in November is also a bearish sign.
- Price rebounded from the range support, but found resistance in the middle of the range.
- Finally, we have a bearish engulfing candle, which suggests a short-term bearish move.
- The short-term bearish outlook would be the $5.00 range low. 
- I think a break below $4.95 might break open a bearish continuation towards the $4.00 area.