D pushes through key technical resistance level
Dominion Energy Inc. (D) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, D ended the week 3.12% higher at 87.46 after surging $1.22 (1.41%) today, notably outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. This is the biggest single-day gain in over four months. Today's close at 87.46 marks the highest recorded closing price ever. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 86.91, the stock confirmed its breakout through the previous session high after trading up to $0.70 above it intraday.
Daily Candlestick Chart (D as at Feb 14, 2020):
Friday's trading range has been $1.41 (1.63%), that's above the last trading month's daily average range of $1.11. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for D.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 86.69 (now S1), which is likely to act as support going forward.
Crossing above the upper Bollinger Band for the first time since January 30th, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 85.00 or signal the beginning of a strong momentum breakout leading to even higher prices. The last time prices broke out above the upper Bollinger Band on January 29th, D gained 1.28% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "52 Week High" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Dominion Energy. Out of 174 times, D closed lower 57.47% 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 10 trading days, showing a win rate of 55.17% with an average market move of -0.49%.