EIX pushes through Wednesday's high
Edison International (EIX) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, EIX ended Thursday at 57.73 gaining $3.91 (7.26%) on low volume, significantly outperforming the S&P 500 (6.24%). Closing above Wednesday's high at 56.79, the share confirmed its breakout through the prior session high after trading up to $2.65 above it intraday.
Daily Candlestick Chart (EIX as at Mar 26, 2020):
Thursday's trading range has been $5.49 (10.14%), that's above the last trading month's daily average range of $4.62. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for EIX.
One bullish candlestick pattern matches today's price action, the White Candle.
The market managed to close above the 20-day moving average at 57.62 for the first time since February 21st. When this moving average was crossed above the last time on February 20th, EIX gained 0.32% on the following trading day.
While Edison International is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Edison International. Out of 180 times, EIX closed lower 56.67% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after seven trading days, showing a win rate of 44.44% with an average market move of -0.03%.