FE closes above its opening price after recovering from early selling pressure
FirstEnergy Corp (FE) Technical Analysis Report for Oct 12, 2018
FE finished the week -1.92% lower at 37.25 after edging higher $0.04 (0.11%) today, significantly underperforming the S&P 500 (1.42%). Trading up to $0.34 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on October 2nd, FE actually lost -1.95% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (FE as at Oct 12, 2018):
Friday's trading range has been $0.56 (1.51%), that's slightly below the last trading month's daily average range of $0.69. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for FE.
One bullish candlestick pattern matches today's price action, the Hammer.
FirstEnergy Corp managed to break above the 20-day moving average at 37.22 today. Unable to break through the key technical resistance level at 37.33 (R1), the stock closed below it after spiking up to 37.35 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.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for FirstEnergy Corp. Out of 153 times, FE closed lower 54.90% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 45.75% with an average market move of -0.05%.