EIX dominated by bulls lifting the market higher throughout the day
Edison International (EIX) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, EIX ended the month 2.5% higher at 55.67 after gaining $0.80 (1.46%) today on high volume, outperforming the S&P 500 (0.77%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 55.07, the share confirmed its breakout through the previous session high after trading up to $0.66 above it intraday.
Daily Candlestick Chart (EIX as at Jul 31, 2020):
Friday's trading range has been $1.26 (2.31%), that's below the last trading month's daily average range of $1.61. 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. Prices continued to consolidate within a tight trading range between 52.90 and 55.93 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the White Candle.
Edison International managed to close back above the 20-day moving average at 55.37 for the first time since July 24th. Unable to break through the key technical resistance level at 55.72 (R1), the stock closed below it after spiking up to 55.73 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. When prices bounced off a significant resistance level the last time on Wednesday, EIX actually gained 2.03% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 57.25 where further buy stops might get triggered. As prices are trading close to July's high at 57.59, upside momentum could accelerate should the market mark new highs for the month.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Edison International. Out of 337 times, EIX closed higher 53.12% 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 56.97% with an average market move of 0.25%.