DUK closes below its opening price unable to hold early session gains
Duke Energy Corporation (DUK) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, DUK ended Wednesday at 84.84 gaining $0.39 (0.46%), outperforming the S&P 500 (-0.46%). Today's close at 84.84 marks the highest recorded closing price since August 7th. Trading $0.48 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (DUK as at Sep 16, 2020):
Wednesday's trading range has been $0.91 (1.07%), that's far below the last trading month's daily average range of $1.50. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for DUK.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Prices are trading close to the key technical resistance level at 85.87 (R1).
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day although could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 81.50.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could speed up should prices move above the nearby swing high at 85.87 where further buy stops might get activated. Further buying could move prices higher should the market test August's close-by high at 87.21.
Among the five 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 222 times, DUK closed higher 58.11% of the time on the next trading day after the market condition occurred.