EIX closes lower for the 4th day in a row
Edison International (EIX) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, EIX ended the week 0.18% higher at 77.14 after losing $0.23 (-0.3%) today on low volume, slightly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (EIX as at Feb 14, 2020):
Friday's trading range has been $0.62 (0.8%), that's far below the last trading month's daily average range of $1.23. 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.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns. The last time a Black Candle showed up on February 6th, EIX actually gained 0.93% on the following trading day.
Prices are trading close to the key technical support level at 76.31 (S1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could accelerate should prices move below the close-by swing low at 76.60 where further sell stops might get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) below 20" stand out. Its common bullish interpretation has been confirmed for Edison International. Out of 255 times, EIX closed higher 53.33% 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 60.39% with an average market move of 0.42%.