DTE finds buyers again around 100.87
DTE Energy Company (DTE) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
DTE finished the week 4.9% higher at 102.12 after gaining $1.08 (1.07%) today on low volume, outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. The bulls were in full control today, moving the market higher throughout the whole session. 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 (DTE as at May 22, 2020):
Friday's trading range has been $1.31 (1.3%), that's far below the last trading month's daily average range of $2.93. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for DTE.
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 Bullish Short Candle and the White Candle which are both known as bullish patterns.
The share managed to close back above the 20-day moving average at 101.31. After having been unable to move lower than 100.82 in the previous session, the market found buyers again around the same price level today at 100.87. The last time this happened on May 12th, DTE actually lost -3.32% on the following trading day.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could accelerate should prices move above the close-by swing high at 104.86 where further buy stops might get activated. Selling could speed up should prices move below the nearby swing low at 100.82 where further sell stops might get triggered.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for DTE Energy. Out of 686 times, DTE closed higher 56.71% 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 63.70% with an average market move of 0.67%.