EPD closes above its opening price after recovering from early selling pressure
Enterprise Products Partners L.P. (EPD) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, EPD finished the week 8.79% higher at 18.68 after losing $0.11 (-0.59%) today on low volume, underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading up to $0.29 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on May 15th, EPD gained 5.82% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (EPD as at May 22, 2020):
Friday's trading range has been $0.49 (2.65%), that's far below the last trading month's daily average range of $0.76. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for EPD.
After trading down to 18.21 earlier during the day, Enterprise Products bounced off the key technical support level at 18.28 (S1). The failure to close below the support could increase that levels importance as support going forward.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might speed up should prices move above the nearby swing high at 19.48 where further buy stops could get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Enterprise Products. Out of 476 times, EPD closed higher 57.35% 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 55.46% with an average market move of 0.35%.