D closes within previous day's range
Dominion Energy Inc. (D) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, D finished Wednesday at 81.60 gaining $0.70 (0.87%), notably outperforming the S&P 500 (-0.46%). Today's close at 81.60 marks the highest recorded closing price since July 29th. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (D as at Sep 16, 2020):
Wednesday's trading range has been $1.35 (1.67%), that's slightly above the last trading month's daily average range of $1.29. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for D.
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.
After trading down to 80.80 earlier during the day, the market bounced off the key technical support level at 80.97 (S1). The failure to close below the support could increase that levels importance as support going forward. When prices bounced off a significant support level the last time on September 8th, D gained 1.84% on the following trading day. Prices are trading close to the key technical resistance level at 82.74 (R1).
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day while might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 78.94.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 82.41 where further buy stops could get triggered. Trading close to July's high at 83.50 we might see further upside momentum if potential buy stops at the level get activated.
Among the four 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 527 times, D closed higher 57.69% 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 57.31% with an average market move of 0.35%.