DUK stuck within tight trading range
Duke Energy Corporation (DUK) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
DUK finished the week 2.51% higher at 83.23 after gaining $0.89 (1.08%) 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 previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (DUK as at May 22, 2020):
Friday's trading range has been $1.43 (1.74%), that's below the last trading month's daily average range of $1.82. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for DUK. Prices continued to consolidate within a tight trading range between 81.89 and 84.09 where it has been caught now for the last three trading days.
Regardless of a weak opening Duke Energy managed to close above the previous day's open and close, forming a bullish Engulfing Candle. The last time this candlestick pattern showed up on April 2nd, DUK actually lost -4.24% on the following trading day. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
The market managed to close back above the 20-day moving average at 83.11. Prices are trading close to the key technical resistance level at 83.96 (R1). After having been unable to move lower than 82.01 in the prior session, the stock found buyers again around the same price level today at 81.89.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might speed up should prices move above the close-by swing high at 85.44 where further buy stops could get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous low" stand out. Its common bullish interpretation has been confirmed for Duke Energy. Out of 577 times, DUK closed higher 54.77% 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 59.45% with an average market move of 0.44%.