FE unable to break through key resistance level
FirstEnergy Corp. (FE) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, FE finished Thursday at 38.67 gaining $3.17 (8.93%) on low volume, significantly outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 37.29, FirstEnergy confirmed its breakout through the previous session high after trading up to $1.98 above it intraday.
Daily Candlestick Chart (FE as at Mar 26, 2020):
Thursday's trading range has been $3.85 (10.85%), that's slightly above the last trading month's daily average range of $3.33. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below 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 White Candle.
Unable to break through the key technical resistance level at 39.25 (R1), the market closed below it after spiking up to 39.27 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. When prices bounced off a significant resistance level the last time on March 16th, FE actually gained 16.94% on the following trading day.
While the share is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could accelerate should prices move above the nearby swing high at 40.49 where further buy stops might get triggered.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for FirstEnergy. Out of 735 times, FE closed higher 52.65% 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 57.14% with an average market move of 0.16%.