Traders officially love to buy CNP around 28.10 level
CenterPoint Energy Inc (CNP) Technical Analysis Report for Aug 10, 2018 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, CNP ended the week 0.57% higher at 28.13 after losing $0.07 (-0.25%) today. Today's closing price of 28.13 marks the lowest close since August 3rd. Trading $0.15 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range. Ending with a weak close near the low of the day sets a bearish note for the next session.
Daily Candlestick Chart (CNP as at Aug 10, 2018):
Friday's trading range was $0.33 (1.17%), that's slightly below last trading month's daily average range of $0.39. Things look different on a weekly scale, where volatility is below the markets average with the monthly volatility being way below average. Prices continued to consolidate within a tight trading range between 27.94 and 28.43 which it has been in now for the last trading week.
Notwithstanding a strong opening the share closed below the previous day's open and close, forming a bearish Engulfing Candle.
Prices are trading close to a key support level at 27.92. CenterPoint Energy was bought again around 28.10 after having seen lows at 28.06, 28.08 and 28.09 in the last three trading sessions. Obviously there is something going on at that level.
Though the market is currently in a short-term down trend, this might just be a correction, as the medium and long term trends are both positive.
Buying could speed up should prices move above the nearby swing high at 28.43 where further buy stops might get triggered. Selling could accelerate should prices move below the close-by swing low at 28.06 where further sell stops might get activated. With prices trading close to this year's high at 28.54, upside momentum could speed up should CNP be able to break out to new highs for the year.