EPD falls to lowest close since December 10, 2019
Enterprise Products Partners L.P. (EPD) Technical Analysis Report for Jan 24, 2020 | by Techniquant Editorial Team
EPD ended the week -5.07% lower at 27.35 after tanking $0.45 (-1.62%) today, underperforming the S&P 500 (-0.9%). Today's close at 27.35 marks the lowest recorded closing price since December 10, 2019. The bears were in full control today, moving the market lower throughout the whole session. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (EPD as at Jan 24, 2020):
Friday's trading range has been $0.69 (2.48%), that's far above the last trading month's daily average range of $0.47. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for EPD.
Two candlestick patterns are matching today's price action, the Last Engulfing Bottom Pattern which is known as bullish pattern and one bearish pattern, the Black Candle.
Enterprise Products closed below the 100-day moving average at 27.65 for the first time since December 16, 2019. When this moving average was crossed below the last time on December 13, 2019, EPD actually gained 0.65% on the following trading day.
Crossing below the lower Bollinger Band for the first time since Wednesday, prices have shown unusually strong downward momentum in the short-term. This could either indicate a potential selling climax after which prices might head back up towards the mean of the Bollinger Bands at 28.40 or signal the beginning of a strong momentum breakout leading to even lower prices.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close below the lower Bollinger Band" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Enterprise Products. Out of 155 times, EPD closed higher 51.61% 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 60.65% with an average market move of 1.65%.