CMS breaks back above 200-day moving average
CMS Energy Corporation (CMS) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
CMS finished Wednesday at 61.94 gaining $0.83 (1.36%), notably outperforming the S&P 500 (-0.46%). Today's close at 61.94 marks the highest recorded closing price since August 10th. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (CMS as at Sep 16, 2020):
Wednesday's trading range has been $1.28 (2.09%), that's slightly above the last trading month's daily average range of $1.10. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CMS. Prices continued to consolidate within a tight trading range between 60.44 and 62.44 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the White Candle.
The stock managed to close back above the 200-day moving average at 61.13. When this moving average was crossed above the last time on Monday, CMS actually lost -0.50% on the following trading day. Prices are trading close to the key technical resistance level at 62.57 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 62.63 where further buy stops might get triggered. Selling could speed up should prices move below the close-by swing low at 60.74 where further sell stops might get activated. As prices are trading close to September's high at 62.81, upside momentum could accelerate should the share mark new highs for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for CMS Energy. Out of 657 times, CMS closed higher 54.34% 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 62.71% with an average market move of 0.78%.