FE pushes through Thursday's high
FirstEnergy Corp. (FE) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, FE ended the week 1.95% higher at 52.23 after gaining $0.25 (0.48%) today, slightly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 52.23 marks the highest recorded closing price since February 9, 2009. Trading up to $0.16 lower after the open, FirstEnergy managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 52.04, the stock confirmed its breakout through the previous session high after trading up to $0.20 above it intraday.
Daily Candlestick Chart (FE as at Feb 14, 2020):
Friday's trading range has been $0.38 (0.73%), that's far below the last trading month's daily average range of $0.58. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for FE.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a Bullish Short Candle showed up on December 30, 2019, FE gained 0.23% on the following trading day.
Prices are trading close to the key technical resistance level at 52.26 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 52.26 where further buy stops could get triggered. With prices trading close to this year's high at 52.26, upside momentum might speed up should the market be able to break out to new highs for the year.
Among the eight 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 739 times, FE closed higher 52.37% 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 56.83% with an average market move of 0.16%.