ETR breaks below key technical support level
Entergy Corporation (ETR) Technical Analysis Report for Oct 11, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, ETR finished the week -1.3% lower at 117.23 after losing $0.56 (-0.48%) today, strongly underperforming the S&P 500 (1.09%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (ETR as at Oct 11, 2019):
Friday's trading range has been $1.24 (1.05%), that's slightly below the last trading month's daily average range of $1.26. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for ETR.
Prices broke below the key technical support level at 117.49 (now R1), which is likely to act as resistance going forward. After having been unable to move lower than 116.90 in the previous session, the stock found buyers again around the same price level today at 116.78. The last time this happened on October 3rd, ETR gained 1.95% on the following trading day.
Though the market is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might speed up should prices move above the close-by swing high at 118.55 where further buy stops could get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Support S1" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Entergy. Out of 260 times, ETR closed higher 52.69% 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 57.69% with an average market move of 0.35%.