ETR closes within previous day's range after lackluster session
Entergy Corporation (ETR) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
ETR finished Wednesday at 96.84 gaining $0.30 (0.31%), outperforming the S&P 500 (-0.46%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (ETR as at Sep 16, 2020):
Wednesday's trading range has been $1.50 (1.56%), that's below the last trading month's daily average range of $2.04. Weekly volatility is also lower, being slightly 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 95.90 and 98.48 where it has been caught now for the last three trading days.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
Buyers managed to take out the key technical resistance level at 96.77 (now S1), which is likely to act as support going forward. The last time this happened on September 2nd, ETR actually lost -2.47% on the following trading day. The market found buyers again today around 96.12 for the third trading day in a row after having found demand at 96.03 in the previous session and at 95.90 two days ago.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the nearby swing high at 98.48 where further buy stops could get triggered. Selling might speed up should prices move below the close-by swing low at 94.67 where further sell stops could get activated. Trading close to July's low at 93.74 we might see further downside momentum if potential sell stops at the level get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior two Lows" stand out. Its common bullish interpretation has been confirmed for Entergy. Out of 146 times, ETR closed higher 54.11% 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 58.22% with an average market move of 0.54%.