EIX slips to lowest close since May 6th
Edison International (EIX) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
EIX finished the month -6.54% lower at 54.31 after losing $1.03 (-1.86%) today, significantly underperforming the S&P 500 (1.54%). Today's close at 54.31 marks the lowest recorded closing price since May 6th. Trading $1.28 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (EIX as at Jun 30, 2020):
Tuesday's trading range has been $2.64 (4.76%), that's slightly above the last trading month's daily average range of $2.32. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for EIX.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar. Additionally, one bullish candlestick pattern matches today's price action, the Last Engulfing Bottom Pattern.
Prices are trading close to the key technical support level at 53.96 (S1). The share found buyers again today around 54.07 for the third trading day in a row after having found demand at 54.26 in the prior session and at 54.28 two days ago. The last time this happened on April 14th, EIX actually lost -3.31% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might accelerate should prices move below the close-by swing low at 52.91 where further sell stops could get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Bottom Pattern" stand out. Its common bullish interpretation has been confirmed for Edison International. Out of 38 times, EIX closed higher 63.16% 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 57.89% with an average market move of 1.32%.