CNP dominated by bulls lifting the market higher throughout the day

CenterPoint Energy Inc (CNP) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team


CNP soars, gaining $0.73 (3.84%) within a single day on high volume
CNP dominated by bulls lifting the market higher throughout the day
CNP fails to close above 50-day moving average
CNP pushes through Tuesday's high


CNP finished Wednesday at 19.74 surging $0.73 (3.84%) on high volume, notably outperforming the S&P 500 (-0.46%). This is the biggest single-day gain in over a month. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Tuesday's high at 19.66, CenterPoint Energy confirmed its breakout through the previous session high after trading up to $0.10 above it intraday.

Daily Candlestick Chart (CNP as at Sep 16, 2020):

Daily technical analysis candlestick chart for CenterPoint Energy Inc (CNP) as at Sep 16, 2020

Wednesday's trading range has been $0.75 (3.94%), that's far above the last trading month's daily average range of $0.47. Weekly volatility is also higher, being slightly above 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 White Candle.

After spiking up to 19.76 during the day, the share found resistance at the 50-day moving average at 19.76. The last time this happened on Monday, CNP lost -2.71% on the following trading day.

Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and might now be heading back up towards the mean of the Bollinger Bands at 19.80.

Although the stock is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.

Buying might speed up should prices move above the close-by swing high at 19.86 where further buy stops could get triggered. Further selling might move prices lower should the market test August's nearby low at 18.77.

Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Very Strong Up Move" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for CenterPoint Energy. Out of 103 times, CNP closed lower 54.37% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after nine trading days, showing a win rate of 54.37% with an average market move of 0.10%.

Market Conditions for CNP as at Sep 16, 2020

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