ED climbs to highest close since October 24, 2019
Consolidated Edison Inc. (ED) Technical Analysis Report for Jan 24, 2020 | by Techniquant Editorial Team
Moving higher for the 7th day in a row, ED finished the week 3.73% higher at 93.61 after gaining $0.84 (0.91%) today, significantly outperforming the S&P 500 (-0.9%). Today's close at 93.61 marks the highest recorded closing price since October 24, 2019. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 92.79, the stock confirmed its breakout through the prior session high after trading up to $0.93 above it intraday.
Daily Candlestick Chart (ED as at Jan 24, 2020):
Friday's trading range has been $1.20 (1.3%), that's above the last trading month's daily average range of $0.95. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for ED.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 92.86 (now S1), which is likely to act as support going forward. The last time this happened on Tuesday, ED gained 0.36% on the following trading day. Prices are trading close to the key technical resistance level at 94.23 (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 though could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 89.37.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
2019's high at 94.97 is within reach and we could see further upside momentum should Consolidated Edison manage to break out beyond.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for Consolidated Edison. Out of 331 times, ED closed higher 54.08% 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 56.80% with an average market move of 0.35%.