ETR closes below its opening price unable to hold early session gains
Entergy Corporation (ETR) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, ETR finished the month -7.87% lower at 93.81 after edging higher $0.04 (0.04%) today, notably underperforming the S&P 500 (1.54%). Trading $0.80 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on June 26th, ETR actually gained 2.30% on the following trading day. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (ETR as at Jun 30, 2020):
Tuesday's trading range has been $1.56 (1.66%), 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 higher than usual for ETR. Prices continued to consolidate within a tight trading range between 91.04 and 94.64 where it has been caught now for the whole last trading week.
One neutral candlestick pattern matches today's price action, the Doji.
Unable to break through the key technical resistance level at 93.98 (R1), Entergy closed below it after spiking up to 94.64 earlier during the day. The failure to close above the resistance might increase that levels importance going forward.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could accelerate should prices move below the nearby swing low at 91.04 where further sell stops might get activated. Further selling could move prices lower should the market test May's close-by low at 90.99.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Entergy. Out of 720 times, ETR closed higher 53.19% 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 54.86% with an average market move of 0.31%.