CMS closes higher for the 2nd day in a row
CMS Energy Corporation (CMS) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, CMS ended the month -0.27% lower at 58.42 after gaining $0.87 (1.51%) today on high volume, slightly underperforming the S&P 500 (1.54%).
Daily Candlestick Chart (CMS as at Jun 30, 2020):
Tuesday's trading range has been $1.15 (1.99%), that's far below the last trading month's daily average range of $1.60. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CMS.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
After trading down to 57.59 earlier during the day, the stock bounced off the key technical support level at 57.77 (S1). The failure to close below the support might increase that levels significance as support going forward. After spiking up to 58.74 during the day, the market found resistance at the 20-day moving average at 58.64. The last time this happened on March 17th, CMS lost -6.45% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 59.88 where further buy stops might get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for CMS Energy. Out of 478 times, CMS closed higher 60.67% 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 63.60% with an average market move of 0.69%.