D runs into sellers again around 80.92
Dominion Energy Inc. (D) Technical Analysis Report for Aug 10, 2020 | by Techniquant Editorial Team
D ended Monday at 80.12 losing $0.50 (-0.62%), underperforming the S&P 500 (0.27%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (D as at Aug 10, 2020):
Monday's trading range has been $1.03 (1.28%), that's far below the last trading month's daily average range of $1.66. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for D. Prices continued to consolidate within a tight trading range between 78.95 and 81.24 where it has been caught now for the whole last trading week.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns. The last time a Bearish Short Candle showed up on June 17th, D actually gained 0.45% on the following trading day.
Unable to break through the key technical resistance level at 80.78 (R1), the stock closed below it after spiking up to 80.92 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. After having been unable to move above 81.10 in the previous session, Dominion Energy ran into sellers again around the same price level today, missing to move higher than 80.92.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 81.10 where further buy stops might get triggered. Selling could accelerate should prices move below the close-by swing low at 78.95 where further sell stops might get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Short Candle" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Dominion Energy. Out of 70 times, D closed higher 64.29% 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 65.71% with an average market move of 0.90%.