NEE dominated by bulls lifting the market higher throughout the day
NextEra Energy Inc. (NEE) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
NEE finished the week 2.63% higher at 233.85 after gaining $4.95 (2.16%) today on low volume, significantly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 233.48, the market confirmed its breakout through the prior session high after trading up to $0.53 above it intraday.
Daily Candlestick Chart (NEE as at May 22, 2020):
Friday's trading range has been $6.86 (3.0%), that's above the last trading month's daily average range of $5.82. 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 NEE. Prices continued to consolidate within a tight trading range between 227.15 and 236.90 where it has been caught now for the whole last trading week.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. Even with a weak opening the share managed to close above the previous day's open and close, forming a bullish Engulfing Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on May 14th, NEE actually lost -1.89% on the following trading day.
NextEra Energy managed to close back above the 20-day moving average at 231.01. Prices are trading close to the key technical resistance level at 235.95 (R1). After having been unable to move lower than 228.07 in the prior session, the stock found buyers again around the same price level today at 227.15.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might accelerate should prices move above the nearby swing high at 236.23 where further buy stops could get triggered. As prices are trading close to May's low at 222.62, downside momentum might speed up should NEE mark new lows for the month.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Engulfing Candle" stand out. Its common bullish interpretation has been confirmed for NextEra Energy. Out of 67 times, NEE closed higher 55.22% 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 68.66% with an average market move of 1.22%.