DTE finds support at 20-day moving average

Overview

Moving lower for the 3rd day in a row, DTE finished the week -1.33% lower at 110.14 after losing $0.44 (-0.4%) today, significantly underperforming the S&P 500 (1.42%). Today's close at 110.14 marks the lowest recorded closing price since October 4th. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.

Daily Candlestick Chart (DTE as at Oct 12, 2018):

Friday's trading range has been $1.36 (1.23%), that's below the last trading month's daily average range of $1.83. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for DTE.

One bullish candlestick pattern matches today's price action, the Hammer.

After trading as low as 109.25 during the day, DTE Energy found support at the 20-day moving average at 110.02. The last time this happened on September 13th, DTE actually lost -1.28% on the following trading day. Prices are trading close to the key technical resistance level at 110.89 (R1).

The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.

Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for DTE Energy. Out of 120 times, DTE closed higher 55.00% 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 60.83% with an average market move of 0.56%.