CMS pushes through Wednesday's high
CMS Energy Corporation (CMS) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, CMS finished Thursday at 56.94 gaining $3.62 (6.79%) on low volume, outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 55.21, the market confirmed its breakout through the previous session high after trading up to $2.70 above it intraday.
Daily Candlestick Chart (CMS as at Mar 26, 2020):
Thursday's trading range has been $5.04 (9.51%), that's slightly above the last trading month's daily average range of $4.84. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for CMS.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 55.70 (now S1), which is likely to act as support going forward. The last time this happened on March 17th, CMS actually lost -6.45% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for CMS Energy. Out of 325 times, CMS closed higher 53.54% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 62.77% with an average market move of 0.64%.