D drops to lowest close since September 27, 2018
Dominion Energy Inc. (D) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, D finished the week -3.25% lower at 69.86 after tanking $2.04 (-2.84%) today, strongly underperforming the S&P 500 (-0.01%). This is the biggest single-day loss in over two weeks. Today's close at 69.86 marks the lowest recorded closing price since September 27, 2018. Closing below Thursday's low at 70.66, the share confirmed its breakout through the prior session low after trading up to $1.24 below it intraday.
Daily Candlestick Chart (D as at Jan 11, 2019):
Friday's trading range has been $2.03 (2.85%), that's slightly above the last trading month's daily average range of $1.89. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for D.
One bearish candlestick pattern matches today's price action, the Black Candle.
After trading as low as 69.42 during the day, Dominion Energy found support at the 200-day moving average at 69.70. Prices broke below the key technical support level at 71.07 (now R1), which is likely to act as resistance going forward. The last time this happened on January 3rd, D actually gained 1.93% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Dominion Energy. Out of 138 times, D closed higher 55.07% 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 61.59% with an average market move of 0.65%.