ES closes lower for the 3rd day in a row
Eversource Energy (ES) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, ES finished the week -1.41% lower at 61.52 after edging lower $0.16 (-0.26%) today, strongly underperforming the S&P 500 (1.42%). Today's close at 61.52 marks the lowest recorded closing price since October 3rd. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (ES as at Oct 12, 2018):
Friday's trading range has been $0.76 (1.23%), that's below the last trading month's daily average range of $1.02. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ES.
Two candlestick patterns are matching today's price action, the Takuri Line which is known as bullish pattern and one bearish pattern, the Bearish Spinning Top. The last time a Takuri Line showed up on August 29th, ES gained 0.74% on the following trading day.
Prices are trading close to the key technical resistance level at 62.32 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could accelerate should prices move below the close-by swing low at 60.56 where further sell stops might get activated. Further selling could move prices lower should the market test September's nearby low at 60.15.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Takuri Line" stand out. Its common bullish interpretation has been confirmed for Eversource Energy. Out of 63 times, ES closed higher 57.14% 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 61.90% with an average market move of 0.92%.