DTE breaks above 200-day moving average for the first time since February 24th
DTE Energy Company (DTE) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
DTE finished the month 7.56% higher at 115.63 after gaining $0.93 (0.81%) today, slightly outperforming the S&P 500 (0.77%). Today's close at 115.63 marks the highest recorded closing price since June 8th. Trading up to $0.88 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 114.99, DTE Energy confirmed its breakout through the previous session high after trading up to $0.89 above it intraday.
Daily Candlestick Chart (DTE as at Jul 31, 2020):
Friday's trading range has been $2.28 (1.99%), that's slightly below the last trading month's daily average range of $2.45. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for DTE.
One bullish candlestick pattern matches today's price action, the White Candle.
The market managed to close above the 200-day moving average at 115.30 for the first time since February 24th. When this moving average was crossed above the last time on December 16, 2019, DTE gained 0.93% on the following trading day. The share found buyers again today around 113.60 for the third trading day in a row after having found demand at 113.40 in the prior session and at 113.46 two days ago.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 116.48 where further buy stops might get triggered. Selling could accelerate should prices move below the close-by swing low at 113.40 where further sell stops might get activated. Further buying could move prices higher should the market test June's nearby high at 117.91.
Among the 11 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 678 times, DTE closed higher 56.64% 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 64.01% with an average market move of 0.71%.