ET unable to break through key resistance level
Energy Transfer LP (ET) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
ET ended the month -8.01% lower at 6.55 after gaining $0.03 (0.46%) today, slightly underperforming the S&P 500 (0.77%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (ET as at Jul 31, 2020):
Friday's trading range has been $0.22 (3.36%), that's slightly below the last trading month's daily average range of $0.29. 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 ET.
Four candlestick patterns are matching today's price action, the Northern Doji which is known as bearish pattern and three neutral patterns, the Doji, the Long-Legged Doji and the Rickshaw-Man.
Unable to break through the key technical resistance level at 6.61 (R1), the stock closed below it after spiking up to 6.65 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. After having been unable to move lower than 6.45 in the prior session, the share found buyers again around the same price level today at 6.43. The last time this happened on July 24th, ET actually lost -4.06% on the following trading day.
Although Energy Transfer is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might speed up should prices move above the close-by swing high at 6.69 where further buy stops could get activated. Selling might accelerate should prices move below the nearby swing low at 6.24 where further sell stops could get triggered.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Rickshaw-Man" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Energy Transfer. Out of 26 times, ET closed higher 53.85% 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 61.54% with an average market move of 2.18%.