DUK finds buyers at key support level
Duke Energy Corporation (DUK) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
DUK ended the month 6.07% higher at 84.74 after edging higher $0.17 (0.2%) today, underperforming the S&P 500 (0.77%). Trading up to $0.45 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 84.58, the stock confirmed its breakout through the prior session high after trading up to $0.23 above it intraday.
Daily Candlestick Chart (DUK as at Jul 31, 2020):
Friday's trading range has been $1.21 (1.44%), that's below the last trading month's daily average range of $1.75. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above 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 83.49 and 85.05 where it has been caught now for the last three trading days.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern. The last time a Last Engulfing Top Pattern showed up on September 10, 2019, DUK actually gained 0.59% on the following trading day.
After trading down to 83.60 earlier during the day, Duke Energy bounced off the key technical support level at 83.89 (S1). The failure to close below the support might increase that levels importance as support going forward. After having been unable to move lower than 83.49 in the previous session, the market found buyers again around the same price level today at 83.60.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could accelerate should prices move above the close-by swing high at 85.05 where further buy stops might get triggered. Selling could speed up should prices move below the nearby swing low at 83.49 where further sell stops might get activated.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Duke Energy. Out of 488 times, DUK closed higher 57.79% 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 59.43% with an average market move of 0.18%.