NEE closes higher for the 2nd day in a row
NextEra Energy Inc. (NEE) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, NEE ended the month -6.02% lower at 240.17 after gaining $1.93 (0.81%) today, underperforming the S&P 500 (1.54%). Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (NEE as at Jun 30, 2020):
Tuesday's trading range has been $4.31 (1.8%), that's far below the last trading month's daily average range of $7.13. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for NEE.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
After spiking up to 241.81 during the day, the share found resistance at the 200-day moving average at 240.56. The last time this happened on May 26th, NEE actually gained 2.91% on the following trading day.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could accelerate should prices move above the close-by swing high at 242.06 where further buy stops might get triggered. Selling could speed up should prices move below the nearby swing low at 233.76 where further sell stops might get activated.
Among the six 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 10 times, NEE closed higher 60.00% 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 80.00% with an average market move of 3.57%.