EPD dominated by bulls lifting the market higher throughout the day
Enterprise Products Partners L.P. (EPD) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
EPD ended the month -4.87% lower at 18.17 after gaining $0.64 (3.65%) today, significantly outperforming the S&P 500 (1.54%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 17.79, the stock confirmed its breakout through the previous session high after trading up to $0.40 above it intraday.
Daily Candlestick Chart (EPD as at Jun 30, 2020):
Tuesday's trading range has been $0.81 (4.63%), that's slightly above the last trading month's daily average range of $0.80. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for EPD.
Regardless of a weak opening Enterprise Products managed to close above the prior day's open and close, forming a bullish Engulfing Candle. Additionally, two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern.
The market found buyers again today around 17.38 for the third trading day in a row after having found demand at 17.35 in the previous session and at 17.28 two days ago. The last time this happened on June 23rd, EPD actually lost -4.63% on the following trading day.
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 accelerate should prices move below the nearby swing low at 17.28 where further sell stops could get triggered.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Hikkake Pattern" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Enterprise Products. Out of 110 times, EPD closed higher 58.18% 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 58.18% with an average market move of 0.91%.