NEE climbs to highest close ever
NextEra Energy Inc. (NEE) Technical Analysis Report for Jan 24, 2020 | by Techniquant Editorial Team
Moving higher for the 11th day in a row, NEE ended the week 4.07% higher at 263.72 after surging $3.64 (1.4%) today on high volume, notably outperforming the S&P 500 (-0.9%) following today's earnings report. Today's close at 263.72 marks the highest recorded closing price ever. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 262.75, the market confirmed its breakout through the previous session high after trading up to $1.31 above it intraday.
Daily Candlestick Chart (NEE as at Jan 24, 2020):
NEE reported earnings of $1.44 per share before today's market open. With analysts having expected an EPS of $1.53, NextEra Energy Inc. failed market expectations by -5.9%. The company's last earnings report was released on Oct. 22, 2019, when NextEra Energy Inc. reported earnings of $2.39 per share surpassing market expectations by 5.3%.
Friday's trading range has been $7.83 (3.05%), that's far above the last trading month's daily average range of $3.01. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for NEE.
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 Tuesday, NEE gained 1.17% on the following trading day.
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 247.48.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 13 market conditions that our pattern recognition engine identified today, the statistics for the Stock Earning Report based market condition "Trading Day post weak Earnings Report" stand out. Although it is usually interpreted as neutral, it has actually shown to be bearish for NextEra Energy. Out of 8 times, NEE closed lower 75.00% 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 62.50% with an average market move of -0.86%.