EPD stuck within tight trading range
Enterprise Products Partners L.P. (EPD) Technical Analysis Report for Aug 07, 2020 | by Techniquant Editorial Team
EPD ended the week 1.7% higher at 17.90 after losing $0.19 (-1.05%) today on low volume, notably underperforming the S&P 500 (0.06%). 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 Aug 07, 2020):
Friday's trading range has been $0.19 (1.06%), that's far below the last trading month's daily average range of $0.49. 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. Prices continued to consolidate within a tight trading range between 17.53 and 18.10 where it has been caught now for the last three trading days.
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. After moving higher in the prior session, Enterprise Products closed lower but above the previous day's open today, forming a bearish Harami Candle. Additionally, two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns. The last time a Black Candle showed up on Wednesday, EPD actually gained 2.84% on the following trading day.
The market closed back below the 20-day moving average at 17.93. The stock ran into sellers again today around 18.05 for the third trading day in a row after having found sellers at 18.10 in the prior session and at 18.03 two days ago.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Buying might speed up should prices move above the nearby swing high at 18.10 where further buy stops could get activated. Further buying might move prices higher should the market test July's close-by high at 18.70.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Harami Candle" stand out. Its common bearish interpretation has been confirmed for Enterprise Products. Out of 32 times, EPD closed lower 65.63% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 53.13% with an average market move of -0.37%.