FE closes within previous day's range after lackluster session
FirstEnergy Corp. (FE) Technical Analysis Report for Apr 22, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, FE finished Monday at 40.59 gaining $0.09 (0.22%), slightly outperforming the S&P 500 (0.1%). Trading up to $0.19 lower after the open, FirstEnergy managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on April 5th, FE actually lost -1.34% on the following trading day. 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 (FE as at Apr 22, 2019):
Monday's trading range has been $0.40 (0.99%), that's below the last trading month's daily average range of $0.63. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for FE. Prices continued to consolidate within a tight trading range between 40.08 and 40.80 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, one bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Prices are trading close to the key technical support level at 40.33 (S1). After having been unable to move above 40.80 in the prior session, the stock ran into sellers again around the same price level today, missing to move higher than 40.75.
Though the market is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might speed up should prices move above the nearby swing high at 40.80 where further buy stops could get activated. Selling might accelerate should prices move below the close-by swing low at 40.08 where further sell stops could get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for FirstEnergy. Out of 725 times, FE closed higher 52.83% 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 54.90% with an average market move of 0.07%.