NEE closes within prior day's range
NextEra Energy Inc. (NEE) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
NEE finished the month 16.88% higher at 280.70 after losing $1.64 (-0.58%) today, notably underperforming the S&P 500 (0.77%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (NEE as at Jul 31, 2020):
Friday's trading range has been $6.93 (2.47%), that's slightly above the last trading month's daily average range of $6.66. 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 higher than usual for NEE. Prices continued to consolidate within a tight trading range between 275.89 and 284.86 where it has been caught now for the whole last trading week.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar. Additionally, two candlestick patterns are matching today's price action, the Northern Doji which is known as bearish pattern and one neutral pattern, the Doji. The last time a Doji showed up on April 21st, NEE gained 4.99% on the following trading day.
After trading down to 275.89 earlier during the day, the share bounced off the key technical support level at 276.10 (S1). The failure to close below the support could increase that levels significance as support going forward. Prices are trading close to the key technical resistance level at 284.86 (R1). After having been unable to move above 282.44 in the prior session, NextEra Energy ran into sellers again around the same price level today, missing to move higher than 282.82.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 284.86 where further buy stops could get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Outside Bar" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for NextEra Energy. Out of 108 times, NEE closed higher 60.19% 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 64.81% with an average market move of 0.71%.