EXC closes within prior day's range after lackluster session
Exelon Corporation (EXC) Technical Analysis Report for Jul 29, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, EXC finished Wednesday at 38.56 gaining $0.59 (1.55%), slightly outperforming the S&P 500 (1.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (EXC as at Jul 29, 2020):
Wednesday's trading range has been $0.77 (2.03%), that's below the last trading month's daily average range of $0.94. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for EXC.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
After trading down to 37.80 earlier during the day, the market bounced off the key technical support level at 37.83 (S1). The failure to close below the support might increase that levels importance as support going forward. Prices are trading close to the key technical resistance level at 39.05 (R1). After having been unable to move above 38.59 in the prior session, the share ran into sellers again around the same price level today, missing to move higher than 38.57. The last time this happened on July 22nd, EXC lost -0.90% on the following trading day.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could accelerate should prices move above the nearby swing high at 38.59 where further buy stops might get activated. As prices are trading close to July's high at 39.52, upside momentum could speed up should the stock mark new highs for the month.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Exelon. Out of 494 times, EXC closed higher 57.89% 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 55.87% with an average market move of 0.31%.