D rises to highest close since April 17th
Dominion Energy Inc. (D) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
D finished the week 2.93% higher at 80.51 after surging $1.91 (2.43%) today, strongly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. This is the biggest single-day gain in over two weeks. Today's close at 80.51 marks the highest recorded closing price since April 17th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 79.14, the share confirmed its breakout through the prior session high after trading up to $1.38 above it intraday.
Daily Candlestick Chart (D as at May 22, 2020):
Friday's trading range has been $2.26 (2.88%), that's above the last trading month's daily average range of $1.75. 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 lower than usual for D.
One bullish candlestick pattern matches today's price action, the White Candle.
The market managed to close above the 200-day moving average at 80.27 for the first time since April 17th. When this moving average was crossed above the last time on April 17th, D actually lost -2.94% on the following trading day. Dominion Energy found buyers again today around 78.26 for the third trading day in a row after having found demand at 78.21 in the previous session and at 78.31 two days ago.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Selling might speed up should prices move below the nearby swing low at 78.21 where further sell stops could get activated. Further buying might move prices higher should the market test April's close-by high at 82.64.
Among the 14 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Dominion Energy. Out of 529 times, D closed higher 57.84% 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 57.28% with an average market move of 0.30%.