EIX finds buyers again around 53.80
Edison International (EIX) Technical Analysis Report for Jul 13, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, EIX finished Monday at 55.98 gaining $0.65 (1.17%), significantly outperforming the S&P 500 (-0.94%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Friday's high at 55.49, the stock confirmed its breakout through the prior session high after trading up to $0.88 above it intraday.
Daily Candlestick Chart (EIX as at Jul 13, 2020):
Monday's trading range has been $2.57 (4.78%), that's above the last trading month's daily average range of $1.96. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for EIX.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern.
After spiking up to 56.37 during the day, Edison International found resistance at the 20-day moving average at 56.04. After having been unable to move lower than 53.76 in the previous session, the share found buyers again around the same price level today at 53.80. The last time this happened on July 6th, EIX actually lost -2.80% on the following trading day.
While the market is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could accelerate should prices move above the close-by swing high at 56.92 where further buy stops might get activated.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 20" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Edison International. Out of 55 times, EIX closed higher 50.91% 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 69.09% with an average market move of 1.39%.