EPD finds support at 100-day moving average
Enterprise Products Partners L.P. (EPD) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, EPD finished the month -3.14% lower at 17.60 after losing $0.02 (-0.11%) today, underperforming the S&P 500 (0.77%). Trading up to $0.32 lower after the open, Enterprise Products managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Wednesday, EPD actually lost -4.65% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (EPD as at Jul 31, 2020):
Friday's trading range has been $0.56 (3.2%), that's slightly below the last trading month's daily average range of $0.59. 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 lower than usual for EPD.
Two candlestick patterns are matching today's price action, the Bullish Spinning Top and the Hammer which are both known as bullish patterns.
After trading as low as 17.17 during the day, the share found support at the 100-day moving average at 17.32. Prices are trading close to the key technical resistance level at 17.94 (R1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
As prices are trading close to July's low at 16.57, downside momentum could accelerate should the market mark new lows for the month.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 100" stand out. Its common bullish interpretation has been confirmed for Enterprise Products. Out of 40 times, EPD closed higher 60.00% 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 60.00% with an average market move of 1.04%.