EVRG pushes through key technical resistance level
Evergy Inc. (EVRG) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
EVRG finished the week 6.12% higher at 60.00 after gaining $1.35 (2.3%) today, notably outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Today's close at 60.00 marks the highest recorded closing price since April 28th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 59.49, the share confirmed its breakout through the previous session high after trading up to $0.52 above it intraday.
Daily Candlestick Chart (EVRG as at May 22, 2020):
Friday's trading range has been $1.19 (2.01%), that's below the last trading month's daily average range of $1.97. 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 EVRG.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
Buyers managed to take out the key technical resistance level at 59.32 (now S1), which is likely to act as support going forward. The last time this happened on May 7th, EVRG gained 2.92% on the following trading day.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Selling could accelerate should prices move below the close-by swing low at 58.29 where further sell stops might get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Its common bullish interpretation has been confirmed for Evergy. Out of 90 times, EVRG closed higher 58.89% 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 54.44% with an average market move of 0.28%.