EVRG pushes through Thursday's high
Evergy Inc. (EVRG) Technical Analysis Report for Oct 11, 2019 | by Techniquant Editorial Team
EVRG ended the week -3.12% lower at 63.95 after gaining $0.48 (0.76%) today, slightly underperforming the S&P 500 (1.09%). Closing above Thursday's high at 63.63, the market confirmed its breakout through the previous session high after trading up to $0.68 above it intraday.
Daily Candlestick Chart (EVRG as at Oct 11, 2019):
Friday's trading range has been $1.30 (2.05%), that's far above the last trading month's daily average range of $0.86. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for EVRG.
Even with a weak opening the stock managed to close above the prior day's open and close, forming a bullish Engulfing Candle.
Unable to break through the key technical resistance level at 64.14 (R1), Evergy closed below it after spiking up to 64.31 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. When prices bounced off a significant resistance level the last time on September 18th, EVRG actually gained 0.61% on the following trading day.
Though the share is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed above last periods high" stand out. Its common bullish interpretation has been confirmed for Evergy. Out of 478 times, EVRG closed higher 51.67% 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 56.49% with an average market move of 0.23%.