ED rises to highest close since August 4th
Consolidated Edison Inc. (ED) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, ED finished Wednesday at 75.68 gaining $1.21 (1.62%), notably outperforming the S&P 500 (-0.46%). Today's close at 75.68 marks the highest recorded closing price since August 4th. Closing above Tuesday's high at 75.59, the share confirmed its breakout through the prior session high after trading up to $0.75 above it intraday.
Daily Candlestick Chart (ED as at Sep 16, 2020):
Wednesday's trading range has been $2.20 (2.96%), that's above the last trading month's daily average range of $1.69. Weekly volatility is also higher, being above 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 White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern.
Buyers managed to take out the key technical resistance level at 75.02 (now S1), which is likely to act as support going forward. Prices are trading close to the key technical resistance level at 76.69 (R1). After having been unable to move lower than 73.96 in the previous session, the stock found buyers again around the same price level today at 74.14.
Crossing above the upper Bollinger Band for the first time since July 23rd, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 72.62 or signal the beginning of a strong momentum breakout leading to even higher prices. The last time prices broke out above the upper Bollinger Band on July 22nd, ED gained 0.65% on the following trading day.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Trading close to July's high at 77.65 we could see further upside momentum if potential buy stops at the level get triggered.
Among the eight 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 56.01% 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 57.49% with an average market move of 0.42%.