CNP unable to break through key resistance level
CenterPoint Energy Inc (CNP) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
CNP finished the week 1.72% higher at 27.18 after flat today, slightly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading $0.23 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on February 3rd, CNP actually gained 0.68% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (CNP as at Feb 14, 2020):
Friday's trading range has been $0.43 (1.58%), that's slightly below the last trading month's daily average range of $0.47. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CNP.
Unable to break through the key technical resistance level at 27.40 (R1), CenterPoint Energy closed below it after spiking up to 27.53 earlier during the day. The failure to close above the resistance might increase that levels importance going forward.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for CenterPoint Energy. Out of 505 times, CNP closed higher 58.02% 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 58.81% with an average market move of 0.52%.