FE stuck within tight trading range
FirstEnergy Corp. (FE) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
FE ended Wednesday at 39.51 edging lower $0.01 (-0.03%), slightly underperforming the S&P 500 (0.3%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (FE as at Feb 13, 2019):
Wednesday's trading range has been $0.27 (0.68%), that's far below the last trading month's daily average range of $0.59. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly lower than usual for FE. Prices continued to consolidate within a tight trading range between 39.19 and 39.78 where it has been caught now for the last three trading days.
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, two candlestick patterns are matching today's price action, the Northern Doji which is known as bearish pattern and one neutral pattern, the Doji. The last time a Doji showed up on December 20, 2018, FE lost -0.56% on the following trading day.
Prices are trading close to the key technical support level at 39.32 (S1). Prices are trading close to the key technical resistance level at 39.88 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 39.78 where further buy stops could get triggered. 2018's high at 39.88 is within reach and we might see further upside momentum should the share manage to break out beyond.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Doji" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for FirstEnergy. Out of 110 times, FE closed higher 55.45% 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 five trading days, showing a win rate of 56.36% with an average market move of 0.09%.