FE climbs to highest close since August 12th
FirstEnergy Corp. (FE) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
FE finished Wednesday at 29.76 gaining $0.41 (1.4%) on low volume, significantly outperforming the S&P 500 (-0.46%). Today's close at 29.76 marks the highest recorded closing price since August 12th. The bulls were in full control today, moving the market higher throughout the whole session. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (FE as at Sep 16, 2020):
Wednesday's trading range has been $0.87 (2.98%), that's far above the last trading month's daily average range of $0.62. 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 slightly lower than usual for FE.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. Additionally, two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern. The last time a White Candle showed up on Monday, FE actually lost -1.05% on the following trading day.
After having been unable to move lower than 29.17 in the prior session, the share found buyers again around the same price level today at 29.15.
Although FirstEnergy is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Further buying could move prices higher should the market test August's close-by high at 30.39.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Outside Bar" stand out. Its common bullish interpretation has been confirmed for FirstEnergy. Out of 101 times, FE closed higher 51.49% 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 55.45% with an average market move of 0.24%.