ED breaks below key technical support level
Consolidated Edison Inc. (ED) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, ED ended the week -3.13% lower at 75.23 after losing $0.82 (-1.08%) today, significantly underperforming the S&P 500 (1.42%). Today's close at 75.23 marks the lowest recorded closing price since September 27th. Closing below Thursday's low at 75.77, the stock confirmed its breakout through the prior session low after trading up to $0.98 below it intraday.
Daily Candlestick Chart (ED as at Oct 12, 2018):
Friday's trading range has been $1.21 (1.59%), that's slightly below the last trading month's daily average range of $1.34. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ED.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 74.31 (S1). Prices broke below the key technical support level at 75.93 (now R1), which is likely to act as resistance going forward. The last time this happened on Wednesday, ED lost -2.21% on the following trading day.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Further selling could move prices lower should the market test September's close-by low at 74.31.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed below last periods low" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Consolidated Edison. Out of 387 times, ED closed higher 55.04% 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 59.17% with an average market move of 0.36%.