NEE dominated by bulls lifting the market higher throughout the day
NextEra Energy Inc. (NEE) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, NEE finished Thursday at 231.10 surging $20.83 (9.91%) on low volume, strongly 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 220.25, the share confirmed its breakout through the prior session high after trading up to $13.92 above it intraday.
Daily Candlestick Chart (NEE as at Mar 26, 2020):
Thursday's trading range has been $23.57 (11.18%), that's above the last trading month's daily average range of $18.69. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for NEE.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 227.99 (now S1), which is likely to act as support going forward. The last time this happened on Tuesday, NEE gained 1.81% on the following trading day. After spiking up to 234.17 during the day, the market found resistance at the 200-day moving average at 231.73.
Although NextEra Energy is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 200" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for NextEra Energy. Out of 7 times, NEE closed higher 57.14% 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 71.43% with an average market move of 1.45%.