CMS rises to highest close since March 17th
CMS Energy Corporation (CMS) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
CMS ended the month 9.86% higher at 64.18 after gaining $0.25 (0.39%) today, slightly underperforming the S&P 500 (0.77%) ahead of Monday's earnings report. Today's close at 64.18 marks the highest recorded closing price since March 17th. Trading up to $0.55 lower after the open, CMS Energy managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 63.99, the share confirmed its breakout through the previous session high after trading up to $0.25 above it intraday.
Daily Candlestick Chart (CMS as at Jul 31, 2020):
CMS is set to report earnings before tomorrow's market open. For the upcoming report, analysts expect the company to have earned $0.45 per share. The company's last earnings report was released on April 27, 2020, when CMS Energy Corporation reported earnings of $0.86 per share topping market expectations by 10.3%.
Friday's trading range has been $1.03 (1.62%), that's slightly below the last trading month's daily average range of $1.20. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CMS.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. The last time this happened on July 21st, CMS gained 3.12% on the following trading day.
After trading down to 63.21 earlier during the day, the stock bounced off the key technical support level at 63.33 (S1). The failure to close below the support might increase that levels significance as support going forward. Prices are trading close to the key technical resistance level at 64.75 (R1). After having been unable to move lower than 63.31 in the prior session, the market found buyers again around the same price level today at 63.21.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
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 477 times, CMS closed higher 60.80% 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 63.73% with an average market move of 0.73%.