EXC stuck within tight trading range
Exelon Corporation (EXC) Technical Analysis Report for Jul 30, 2020 | by Techniquant Editorial Team
EXC ended Thursday at 38.47 losing $0.09 (-0.23%), but still slightly outperforming the S&P 500 (-0.38%). Trading up to $0.49 lower after the open, Exelon managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (EXC as at Jul 30, 2020):
Thursday's trading range has been $0.93 (2.44%), that's slightly above the last trading month's daily average range of $0.92. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for EXC. Prices continued to consolidate within a tight trading range between 37.41 and 38.59 where it has been caught now for the last three trading days.
One bullish candlestick pattern matches today's price action, the Bullish Hikkake Pattern.
After trading down to 37.56 earlier during the day, the market bounced off the key technical support level at 37.82 (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 38.81 (R1). The stock ran into sellers again today around 38.49 for the third trading day in a row after having found sellers at 38.57 in the prior session and at 38.59 two days ago. The last time this happened on May 29th, EXC actually gained 1.38% 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 close-by swing high at 38.59 where further buy stops might get triggered. As prices are trading close to July's high at 39.52, upside momentum could speed up should the share mark new highs for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Hikkake Pattern" stand out. Its common bullish interpretation has been confirmed for Exelon. Out of 108 times, EXC closed higher 61.11% 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 53.70% with an average market move of 0.38%.