EPD closes lower for the 3rd day in a row
Enterprise Products Partners L.P. (EPD) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, EPD ended the week 2.0% higher at 27.04 after edging lower $0.05 (-0.18%) today on low volume, slightly underperforming the S&P 500 (-0.01%). Trading up to $0.12 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (EPD as at Jan 11, 2019):
Friday's trading range has been $0.34 (1.26%), that's far below the last trading month's daily average range of $0.70. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for EPD.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Unable to break through the key technical resistance level at 27.19 (R1), the share closed below it after spiking up to 27.22 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. After having been unable to move lower than 26.94 in the prior session, Enterprise Products found buyers again around the same price level today at 26.88. The last time this happened on December 26, 2018, EPD actually lost -1.86% on the following trading day.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Lower Closes" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Enterprise Products. Out of 148 times, EPD closed higher 52.70% 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 60.81% with an average market move of 1.13%.