ES still stuck within tight trading range
Eversource Energy (ES) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, ES ended the month -0.51% lower at 83.27 after edging higher $0.18 (0.22%) today, notably underperforming the S&P 500 (1.54%). Trading up to $0.77 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Monday's high at 83.12, Eversource Energy confirmed its breakout through the previous session high after trading up to $0.63 above it intraday.
Daily Candlestick Chart (ES as at Jun 30, 2020):
Tuesday's trading range has been $1.64 (1.98%), that's far below the last trading month's daily average range of $2.28. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for ES. Prices continued to consolidate within a tight trading range between 81.16 and 83.75 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern. The last time a Bullish Spinning Top showed up on June 18th, ES actually lost -2.16% on the following trading day.
Prices are trading close to the key technical resistance level at 84.00 (R1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could speed up should prices move below the close-by swing low at 81.16 where further sell stops might get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Spinning Top" stand out. Its common bullish interpretation has been confirmed for Eversource Energy. Out of 229 times, ES closed higher 57.21% 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 56.33% with an average market move of 0.44%.