EIX stuck within tight trading range
Edison International (EIX) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
EIX ended the week 1.54% higher at 59.32 after edging lower $0.02 (-0.03%) today, slightly underperforming the S&P 500 (-0.01%). Trading up to $0.46 lower after the open, the market 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 missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (EIX as at Jan 11, 2019):
Friday's trading range has been $0.77 (1.3%), that's far below the last trading month's daily average range of $1.80. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for EIX. Prices continued to consolidate within a tight trading range between 57.57 and 59.43 where it has been caught now for the last three trading days.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
Prices are trading close to the key technical resistance level at 59.43 (R1). After having been unable to move above 59.43 in the prior session, the stock ran into sellers again around the same price level today, failing to move higher than 59.40. The last time this happened on Tuesday, EIX actually gained 1.28% on the following trading day.
Although the share is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might speed up should prices move above the close-by swing high at 59.43 where further buy stops could get activated. Further buying might move prices higher should the market test December's nearby high at 60.15.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bullish Intraday Reversal" stand out. Its common bullish interpretation has been confirmed for Edison International. Out of 463 times, EIX closed higher 53.78% 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 58.32% with an average market move of 0.37%.