DTE still stuck within tight trading range
DTE Energy Company (DTE) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
DTE finished Wednesday at 119.04 edging higher $0.48 (0.4%) on high volume, outperforming the S&P 500 (-0.46%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (DTE as at Sep 16, 2020):
Wednesday's trading range has been $2.82 (2.38%), that's above the last trading month's daily average range of $2.29. 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. Prices continued to consolidate within a tight trading range between 117.35 and 121.45 where it has been caught now for the whole last trading week.
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, one bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on September 11th, DTE gained 1.64% on the following trading day.
After having been unable to move lower than 117.78 in the previous session, the market found buyers again around the same price level today at 118.00.
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 121.45 where further buy stops could get triggered. Selling might accelerate should prices move below the nearby swing low at 117.78 where further sell stops could get activated. As prices are trading close to September's high at 121.90, upside momentum might speed up should the stock mark new highs for the month.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for DTE Energy. Out of 681 times, DTE closed higher 56.98% 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 64.32% with an average market move of 0.75%.