EXC dominated by bulls lifting the market higher throughout the day
Exelon Corporation (EXC) Technical Analysis Report for Aug 04, 2020 | by Techniquant Editorial Team
EXC finished Tuesday at 38.75 gaining $0.76 (2.0%), strongly outperforming the S&P 500 (0.36%) following today's earnings report. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 38.45, the market confirmed its breakout through the previous session high after trading up to $0.48 above it intraday.
Daily Candlestick Chart (EXC as at Aug 04, 2020):
EXC reported earnings of $0.55 per share before today's market open. With analysts having expected an EPS of $0.42, Exelon Corporation surpassed market expectations by 31.0%. The company's last earnings report was released on May 8, 2020, when Exelon Corporation reported earnings of $0.87 per share topping market expectations by 2.4%.
Tuesday's trading range has been $1.59 (4.23%), that's far above the last trading month's daily average range of $0.95. 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.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. Regardless of a weak opening the share managed to close above the prior day's open and close, forming a bullish Engulfing Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
The stock managed to close back above the 50-day moving average at 38.08. When this moving average was crossed above the last time on July 28th, EXC gained 1.55% on the following trading day. Unable to break through the key technical resistance level at 38.81 (R1), Exelon closed below it after spiking up to 38.93 earlier during the day. The failure to close above the resistance could increase that levels importance going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Further buying might move prices higher should the market test July's nearby high at 39.52.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Stock Earning Report based market condition "Trading Day post Earnings Report" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Exelon. Out of 31 times, EXC closed higher 54.84% 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 eight trading days, showing a win rate of 58.06% with an average market move of 0.22%.