EPD closes lower for the 5th day in a row
Enterprise Products Partners L.P. (EPD) Technical Analysis Report for Jun 29, 2020 | by Techniquant Editorial Team
Moving lower for the 5th day in a row, EPD ended Monday at 17.53 losing $0.10 (-0.57%), notably underperforming the S&P 500 (1.47%). Today's close at 17.53 marks the lowest recorded closing price since May 15th. 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 Jun 29, 2020):
Monday's trading range has been $0.44 (2.49%), that's far below the last trading month's daily average range of $0.78. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for EPD.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on June 5th, EPD actually gained 6.49% on the following trading day.
After having been unable to move lower than 17.28 in the prior session, Enterprise Products found buyers again around the same price level today at 17.35.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling might speed up should prices move below the nearby swing low at 17.28 where further sell stops could get triggered. Further selling might move prices lower should the market test May's close-by low at 16.33.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "5 Consecutive Lower Closes" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Enterprise Products. Out of 34 times, EPD closed higher 61.76% 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 64.71% with an average market move of 1.47%.