DUK breaks below 200-day moving average for the first time since August 5th
Duke Energy Corporation (DUK) Technical Analysis Report for Nov 08, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, DUK ended the week -4.71% lower at 89.93 after tanking $2.65 (-2.86%) today on high volume, strongly underperforming the S&P 500 (0.26%) following today's earnings report. This is the biggest single-day loss in over 10 months. Today's close at 89.93 marks the lowest recorded closing price since August 16th. The bears were in full control today, moving the market lower throughout the whole session.
Daily Candlestick Chart (DUK as at Nov 08, 2019):
DUK reported earnings of $1.79 per share before today's market open. With analysts having expected an EPS of $1.69, Duke Energy Corporation surpassed market expectations by 5.9%. The company's last earnings report was released on Aug. 6, 2019, when Duke Energy Corporation reported earnings of $1.12 per share surpassing market expectations by 15.5%.
Friday's trading range has been $2.56 (2.79%), that's far above the last trading month's daily average range of $1.03. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for DUK.
One bearish candlestick pattern matches today's price action, the Black Candle.
The stock closed below the 200-day moving average at 90.36 for the first time since August 5th. When this moving average was crossed below the last time on August 5th, DUK actually gained 2.25% on the following trading day.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day though might signal a potential change in momentum that could lead to a correction back up towards the center of the Bollinger Bands at 94.35.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(14) below 30" stand out. Its common bullish interpretation has been confirmed for Duke Energy. Out of 27 times, DUK closed higher 62.96% 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 62.96% with an average market move of 1.03%.