ETR closes higher for the 4th day in a row
Entergy Corporation (ETR) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, ETR finished the month 12.07% higher at 105.13 after edging higher $0.49 (0.47%) today, slightly underperforming the S&P 500 (0.77%). Today's close at 105.13 marks the highest recorded closing price since June 8th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 104.87, the share confirmed its breakout through the previous session high after trading up to $0.40 above it intraday.
Daily Candlestick Chart (ETR as at Jul 31, 2020):
Friday's trading range has been $1.52 (1.46%), that's far below the last trading month's daily average range of $2.52. 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 ETR.
Three candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns and one bearish pattern, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on July 17th, ETR lost -2.04% on the following trading day.
Buyers managed to take out the key technical resistance level at 104.97 (now S1), which is likely to act as support going forward.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might accelerate should prices move above the nearby swing high at 105.41 where further buy stops could get activated. Further buying might move prices higher should the market test June's close-by high at 106.48.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Hikkake Pattern" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Entergy. Out of 116 times, ETR closed higher 50.86% 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 56.03% with an average market move of 0.23%.