ED plunges, losing $2.24 (-2.95%) within a single day
Consolidated Edison Inc. (ED) Technical Analysis Report for Aug 05, 2020 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, ED ended Wednesday at 73.66 tanking $2.24 (-2.95%), significantly underperforming the S&P 500 (0.64%). This is the biggest single-day loss in over a month. The bears were in full control today, moving the market lower throughout the whole session. Ending with a weak close near the low of the day sets a bearish note for the next session.
Daily Candlestick Chart (ED as at Aug 05, 2020):
Wednesday's trading range has been $2.45 (3.24%), that's far above the last trading month's daily average range of $1.61. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ED.
One bearish candlestick pattern matches today's price action, the Black Candle.
The market closed below the 50-day moving average at 74.07 for the first time since July 16th. When this moving average was crossed below the last time on April 21st, ED actually gained 0.75% on the following trading day.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 20" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Consolidated Edison. Out of 156 times, ED closed higher 50.00% 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 64.10% with an average market move of 0.38%.