EPD closes within previous day's range
Enterprise Products Partners L.P. (EPD) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
EPD finished Wednesday at 17.02 gaining $0.24 (1.43%), strongly outperforming the S&P 500 (-0.46%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (EPD as at Sep 16, 2020):
Wednesday's trading range has been $0.42 (2.48%), that's slightly below the last trading month's daily average range of $0.42. 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 moving lower in the previous session, the share managed to close higher but below the prior day's open, forming a bullish Harami Candle. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Unable to break through the key technical resistance level at 17.09 (R1), Enterprise Products closed below it after spiking up to 17.21 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. After having been unable to move lower than 16.78 in the previous session, the market found buyers again around the same price level today at 16.79. The last time this happened on Monday, EPD actually lost -2.04% on the following trading day.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Buying could accelerate should prices move above the close-by swing high at 17.35 where further buy stops might get triggered. Selling could speed up should prices move below the nearby swing low at 16.78 where further sell stops might get activated. Trading close to July's low at 16.57 we could see further downside momentum if potential sell stops at the level get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Enterprise Products. Out of 711 times, EPD closed higher 50.21% 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 55.98% with an average market move of 0.50%.