EIX surges 2.0% on high volume
Edison International (EIX) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
EIX finished Wednesday at 52.54 surging $1.03 (2.0%) on high volume, notably outperforming the S&P 500 (-0.46%). This is the biggest single-day gain in over three weeks. The bulls were in full control today, moving the market higher throughout the whole session. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (EIX as at Sep 16, 2020):
Wednesday's trading range has been $1.53 (2.98%), that's far above the last trading month's daily average range of $1.16. Weekly volatility is also higher, being slightly above 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 White Candle.
The stock managed to close back above the 20-day moving average at 51.80 for the first time since September 3rd. Prices are trading close to the key technical resistance level at 52.90 (R1). After having been unable to move lower than 51.22 in the previous session, Edison International found buyers again around the same price level today at 51.36. The last time this happened on September 9th, EIX actually lost -2.02% on the following trading day.
Though the share is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might speed up should prices move above the close-by swing high at 53.58 where further buy stops could get triggered. As prices are trading close to September's high at 53.58, upside momentum might accelerate should the market mark new highs for the month.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Edison International. Out of 596 times, EIX closed higher 51.17% 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 57.72% with an average market move of 0.38%.