FE climbs to highest close since July 30, 2012
FirstEnergy Corp. (FE) Technical Analysis Report for Jan 24, 2020 | by Techniquant Editorial Team
Moving higher for the 9th day in a row, FE ended the week 2.87% higher at 50.47 after gaining $0.12 (0.24%) today, significantly outperforming the S&P 500 (-0.9%). Today's close at 50.47 marks the highest recorded closing price since July 30, 2012. Trading up to $0.24 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on January 17th, FE gained 0.49% on the following trading day. Closing above Thursday's high at 50.37, the share confirmed its breakout through the previous session high after trading up to $0.38 above it intraday.
Daily Candlestick Chart (FE as at Jan 24, 2020):
Friday's trading range has been $0.67 (1.33%), that's above the last trading month's daily average range of $0.52. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for FE.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day though could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 48.46.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "52 Week High" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for FirstEnergy. Out of 110 times, FE closed lower 53.64% 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 50.91% with an average market move of -0.67%.