ED closes above its opening price after recovering from early selling pressure
Consolidated Edison Inc. (ED) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
ED finished the week -0.26% lower at 70.18 after gaining $0.26 (0.37%) today on low volume, slightly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading up to $0.41 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above 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 (ED as at May 22, 2020):
Friday's trading range has been $0.86 (1.23%), that's far below the last trading month's daily average range of $2.13. 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 ED.
After having been unable to move lower than 69.68 in the previous session, the market found buyers again around the same price level today at 69.45. The last time this happened on May 15th, ED gained 3.91% on the following trading day.
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 69.16 where further sell stops could get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior low" stand out. Its common bullish interpretation has been confirmed for Consolidated Edison. Out of 537 times, ED closed higher 56.24% 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 58.10% with an average market move of 0.40%.