EPD closes higher for the 3rd day in a row
Enterprise Products Partners L.P. (EPD) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, EPD ended Wednesday at 28.06 gaining $0.24 (0.86%) on high volume, outperforming the S&P 500 (0.3%). Trading up to $0.10 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 Feb 13, 2019):
Wednesday's trading range has been $0.21 (0.75%), that's far below the last trading month's daily average range of $0.50. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for EPD.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. After moving lower in the previous session, Enterprise Products managed to close higher but below the prior day's open, forming a bullish Harami Candle.
Prices are trading close to the key technical resistance level at 28.11 (R1). After having been unable to move above 28.11 in the previous session, the share ran into sellers again around the same price level today, missing to move higher than 28.08. The last time this happened on February 1st, EPD actually gained 1.42% on the following trading day.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might accelerate should prices move above the close-by swing high at 28.11 where further buy stops could get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Up Close near high of period" stand out. Its common bullish interpretation has been confirmed for Enterprise Products. Out of 563 times, EPD closed higher 55.06% 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 57.19% with an average market move of 0.35%.