ED closes within prior day's range after lackluster session
Consolidated Edison Inc. (ED) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
ED finished the month 6.81% higher at 76.83 after edging lower $0.11 (-0.14%) today on high volume, underperforming the S&P 500 (0.77%). Trading up to $0.71 lower after the open, Consolidated Edison 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 failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (ED as at Jul 31, 2020):
Friday's trading range has been $1.26 (1.65%), that's below the last trading month's daily average range of $1.58. 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 75.50 and 77.14 where it has been caught now for the last three trading days.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on July 16th, ED gained 3.10% on the following trading day.
Prices are trading close to the key technical resistance level at 77.77 (R1). The stock ran into sellers again today around 77.11 for the third trading day in a row after having found sellers at 77.14 in the previous session and at 76.90 two days ago.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might accelerate should prices move above the nearby swing high at 77.14 where further buy stops could get triggered. Trading close to May's high at 78.57 we might see further upside momentum if potential buy stops at the level get activated.
Among the six 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 541 times, ED closed higher 56.19% 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 57.86% with an average market move of 0.43%.