ED runs into sellers again around 72.98
Consolidated Edison Inc. (ED) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
ED finished the month -4.17% lower at 71.93 after losing $0.77 (-1.06%) today, significantly underperforming the S&P 500 (1.54%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (ED as at Jun 30, 2020):
Tuesday's trading range has been $1.97 (2.71%), that's slightly below the last trading month's daily average range of $1.98. 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. Prices continued to consolidate within a tight trading range between 69.81 and 72.98 where it has been caught now for the whole last trading week.
Prices are trading close to the key technical support level at 70.56 (S1). After having been unable to move above 72.70 in the prior session, Consolidated Edison ran into sellers again around the same price level today, missing to move higher than 72.98. The last time this happened on June 24th, ED lost -1.27% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could accelerate should prices move below the nearby swing low at 69.81 where further sell stops might get activated. Further selling could move prices lower should the market test May's close-by low at 69.16.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous High" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Consolidated Edison. Out of 570 times, ED closed higher 56.14% 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 57.54% with an average market move of 0.22%.