D loses $0.49 (-0.6%) after posting strong earnings
Dominion Energy Inc. (D) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, D ended the month -0.18% lower at 81.03 after losing $0.49 (-0.6%) today, significantly underperforming the S&P 500 (0.77%) following today's earnings report. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (D as at Jul 31, 2020):
D reported earnings of $0.82 per share before today's market open. With analysts having expected an EPS of $0.81, Dominion Energy Inc. surpassed market expectations by 1.2%. The company's last earnings report was released on May 5, 2020, when Dominion Energy Inc. reported earnings of $1.09 per share missing market expectations by -0.9%.
Friday's trading range has been $2.30 (2.82%), that's slightly above the last trading month's daily average range of $2.06. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for D.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on Monday, D actually gained 2.29% on the following trading day.
After trading as low as 79.89 during the day, Dominion Energy found support at the 200-day moving average at 80.85. The share closed back below the 50-day moving average at 81.05. After having been unable to move above 82.07 in the previous session, the market ran into sellers again around the same price level today, failing to move higher than 82.19.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might accelerate should prices move above the close-by swing high at 82.68 where further buy stops could get triggered. Selling might speed up should prices move below the nearby swing low at 79.59 where further sell stops could get activated. As prices are trading close to July's high at 83.50, upside momentum might accelerate should the stock mark new highs for the month.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Dominion Energy. Out of 305 times, D closed higher 55.41% 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 60.98% with an average market move of 0.36%.