EIX closes above its opening price after recovering from early selling pressure
Edison International (EIX) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, EIX ended the week 0.86% higher at 56.43 after edging higher $0.16 (0.28%) today on low volume, slightly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading up to $0.44 lower after the open, the share 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 May 22, 2020):
Friday's trading range has been $0.81 (1.44%), that's far below the last trading month's daily average range of $1.85. 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.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Prices are trading close to the key technical resistance level at 57.52 (R1). After having been unable to move above 56.59 in the previous session, the stock ran into sellers again around the same price level today, missing to move higher than 56.64. The last time this happened on Wednesday, EIX actually gained 0.02% on the following trading day.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could accelerate should prices move above the close-by swing high at 58.05 where further buy stops might get triggered. Selling could speed up should prices move below the nearby swing low at 55.42 where further sell stops might get activated. As prices are trading close to May's low at 53.44, downside momentum could accelerate should Edison International mark new lows for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Spinning Top" stand out. Its common bullish interpretation has been confirmed for Edison International. Out of 227 times, EIX closed higher 56.39% 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 59.91% with an average market move of 0.34%.