CNP closes above its opening price after recovering from early selling pressure
CenterPoint Energy Inc (CNP) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, CNP finished the month 5.01% higher at 18.67 after edging higher $0.05 (0.27%) today on low volume, notably underperforming the S&P 500 (1.54%). Today's close at 18.67 marks the highest recorded closing price since June 8th. Trading up to $0.24 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (CNP as at Jun 30, 2020):
Tuesday's trading range has been $0.41 (2.2%), that's far below the last trading month's daily average range of $0.66. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CNP.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on June 2nd, CNP gained 1.99% on the following trading day.
Prices are trading close to the key technical resistance level at 18.85 (R1).
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
As prices are trading close to June's high at 19.34, upside momentum might speed up should the stock mark new highs for the month.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for CenterPoint Energy. Out of 319 times, CNP closed higher 52.98% 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 55.80% with an average market move of 0.33%.