ETR closes higher for the 3rd day in a row
Entergy Corporation (ETR) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, ETR ended the week 3.14% higher at 97.96 after edging higher $0.33 (0.34%) today, slightly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading up to $0.49 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (ETR as at May 22, 2020):
Friday's trading range has been $1.18 (1.21%), that's far below the last trading month's daily average range of $3.08. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ETR. Prices continued to consolidate within a tight trading range between 96.56 and 100.46 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the Bullish Hikkake Pattern.
Prices are trading close to the key technical support level at 96.56 (S1). The market found buyers again today around 97.06 for the third trading day in a row after having found demand at 97.20 in the prior session and at 96.86 two days ago. The last time this happened on April 3rd, ETR gained 11.54% on the following trading day.
While the stock is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could accelerate should prices move above the close-by swing high at 100.46 where further buy stops might get triggered. Selling could speed up should prices move below the nearby swing low at 96.56 where further sell stops might get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous two Lows" stand out. Its common bullish interpretation has been confirmed for Entergy. Out of 144 times, ETR closed higher 54.17% 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 58.33% with an average market move of 0.40%.