ET finds buyers again around 6.93
Energy Transfer LP (ET) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
ET ended the month -12.75% lower at 7.12 after gaining $0.10 (1.42%) today on low volume, slightly underperforming the S&P 500 (1.54%). Trading up to $0.07 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. 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 (ET as at Jun 30, 2020):
Tuesday's trading range has been $0.20 (2.86%), that's far 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 higher than usual for ET.
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. Despite a weak opening Energy Transfer managed to close above the prior day's open and close, forming a bullish Engulfing Candle. The last time this candlestick pattern showed up on February 28th, ET gained 6.77% on the following trading day. Additionally, two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
Prices are trading close to the key technical support level at 6.92 (S1). After having been unable to move lower than 6.90 in the previous session, the stock found buyers again around the same price level today at 6.93.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling could accelerate should prices move below the close-by swing low at 6.90 where further sell stops might get triggered. Further selling could move prices lower should the market test May's nearby low at 6.61.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Engulfing Candle" stand out. Its common bullish interpretation has been confirmed for Energy Transfer. Out of 61 times, ET closed higher 67.21% 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 57.38% with an average market move of -0.21%.