DTE breaks back below 20-day moving average
DTE Energy Company (DTE) Technical Analysis Report for Apr 16, 2019 | by Techniquant Editorial Team
DTE finished Tuesday at 122.81 tanking $1.65 (-1.33%), significantly underperforming the S&P 500 (0.05%). This is the biggest single-day loss in over three months. Closing below Monday's low at 124.04, the market confirmed its breakout through the prior session low after trading up to $1.71 below it intraday.
Daily Candlestick Chart (DTE as at Apr 16, 2019):
Tuesday's trading range has been $2.64 (2.12%), that's far above the last trading month's daily average range of $1.54. 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 slightly lower than usual for DTE.
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 Black Candle.
After trading as low as 122.33 during the day, DTE Energy found support at the 50-day moving average at 122.56. The share closed back below the 20-day moving average at 123.89 for the first time since April 10th. After having been unable to move above 124.89 in the previous session, the stock ran into sellers again around the same price level today, missing to move higher than 124.97. The last time this happened on April 5th, DTE lost -1.10% on the following trading day.
Though DTE is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Further selling might move prices lower should the market test March's close-by low at 121.71.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 20" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for DTE Energy. Out of 171 times, DTE closed higher 56.73% 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 61.40% with an average market move of 0.83%.