ET still stuck within tight trading range
Energy Transfer LP (ET) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, ET finished Thursday at 5.08 gaining $0.16 (3.25%), significantly underperforming the S&P 500 (6.24%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (ET as at Mar 26, 2020):
Thursday's trading range has been $0.96 (19.09%), that's slightly below the last trading month's daily average range of $0.96. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for ET. Prices continued to consolidate within a tight trading range between 4.61 and 5.83 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Unable to break through the key technical resistance level at 5.53 (R1), the stock closed below it after spiking up to 5.79 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. When prices bounced off a significant resistance level the last time on March 20th, ET lost -8.76% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 5.83 where further buy stops could get activated. Selling might speed up should prices move below the close-by swing low at 4.61 where further sell stops could get triggered.
Among the five 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 Energy Transfer. Out of 222 times, ET closed higher 50.00% 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 57.21% with an average market move of 0.11%.