Traders officially love to buy CNP around 28.10 level


CenterPoint Energy (CNP) Technical Analysis Report for Aug 10, 2018 [1 min read]
Highlights
Traders officially love to buy CNP around 28.10 level
CNP closes below its opening price unable to hold early session gains
CNP closes lower for the 3rd day in a row
CNP ends the day on a bearish note closing near the low of the day
CNP falls to lowest close since August 3rd
TQ Sentiment
Report Sentiment: 27% Bearish
Technical Forecast:
Overview

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 chart for CNP
Volatility

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.

Price Action

Notwithstanding a strong opening the share closed below the previous day's open and close, forming a bearish Engulfing Candle.

Support/Resistance

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.

Trend

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.

Order Flow

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.

Conclusion

While classical technical analysis indicates a neutral sentiment for the next trading day, our quantitative statistics show a different picture being bullish.

Market Conditions for CenterPoint Energy
Condition Forecast Direction Win Avg Worst Best Events
Close to R1 Resistance TQ Pro Members Only
Strong Up Move TQ Pro Members Only
Decisive Up Move TQ Pro Members Only
White Candle TQ Pro Members Only
Low close to previous low TQ Pro Members Only
More market conditions identified for TQ Pro members...
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