DUK breaks below key technical support level
Duke Energy Corporation (DUK) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
DUK finished the month -6.7% lower at 79.89 after losing $0.36 (-0.45%) today, strongly underperforming the S&P 500 (1.54%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (DUK as at Jun 30, 2020):
Tuesday's trading range has been $1.55 (1.94%), that's below the last trading month's daily average range of $2.29. 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 DUK.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on June 26th, DUK actually gained 1.67% on the following trading day.
Prices broke below the key technical support level at 79.96 (now R1), which is likely to act as resistance going forward. After having been unable to move above 80.25 in the prior session, the stock ran into sellers again around the same price level today, missing to move higher than 80.48.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might speed up should prices move below the nearby swing low at 77.58 where further sell stops could get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Duke Energy. Out of 216 times, DUK closed higher 58.80% of the time on the next trading day after the market condition occurred.