ED pushes through key technical resistance level
Consolidated Edison Inc. (ED) Technical Analysis Report for Jul 02, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, ED ended Thursday at 73.81 gaining $0.71 (0.97%) on low volume, outperforming the S&P 500 (0.45%) ahead of tomorrow's Independence Day OBS market holiday. Closing above Wednesday's high at 73.42, the market confirmed its breakout through the previous session high after trading up to $0.91 above it intraday.
Daily Candlestick Chart (ED as at Jul 02, 2020):
Thursday's trading range has been $1.32 (1.81%), that's below the last trading month's daily average range of $1.97. 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.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a Bullish Short Candle showed up on May 28th, ED gained 2.61% on the following trading day.
Buyers managed to take out the key technical resistance level at 73.78 (now S1), which is likely to act as support going forward. After spiking up to 74.33 during the day, the stock found resistance at the 20-day moving average at 73.88.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 20" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Consolidated Edison. Out of 62 times, ED closed higher 51.61% 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 67.74% with an average market move of 0.30%.