EPD closes within previous day's range after lackluster session
Enterprise Products Partners L.P. (EPD) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
EPD finished the week 2.74% higher at 26.26 after gaining $0.17 (0.65%) today on low volume, slightly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading up to $0.28 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on January 30th, EPD actually lost -2.86% on the following trading day. 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 14, 2020):
Friday's trading range has been $0.37 (1.41%), that's below the last trading month's daily average range of $0.55. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for EPD.
Prices are trading close to the key technical support level at 25.85 (S1).
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could accelerate should prices move above the nearby swing high at 26.76 where further buy stops might get activated. With prices trading close to this year's low at 25.32, downside momentum could speed up should the share break out to new lows for the year.
Among the four 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 534 times, EPD closed higher 53.56% 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 57.49% with an average market move of 0.21%.