FE closes higher for the 2nd day in a row
FirstEnergy Corp. (FE) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, FE ended the month -25.22% lower at 29.00 after gaining $0.13 (0.45%) today, slightly underperforming the S&P 500 (0.77%). Trading up to $0.32 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (FE as at Jul 31, 2020):
Friday's trading range has been $0.82 (2.86%), that's slightly below the last trading month's daily average range of $1.78. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for FE. Prices continued to consolidate within a tight trading range between 28.25 and 30.36 where it has been caught now for the whole last trading week.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
Prices are trading close to the key technical support level at 28.25 (S1). FirstEnergy found buyers again today around 28.38 for the third trading day in a row after having found demand at 28.25 in the previous session and at 28.42 two days ago. The last time this happened on June 9th, FE actually lost -1.49% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 30.36 where further buy stops might get triggered. Selling could accelerate should prices move below the close-by swing low at 28.25 where further sell stops might get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for FirstEnergy. Out of 609 times, FE closed higher 52.71% 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 56.81% with an average market move of 0.12%.