NEE closes below its opening price unable to hold early session gains
NextEra Energy Inc. (NEE) Technical Analysis Report for Oct 23, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, NEE ended the week -0.83% lower at 303.07 after edging higher $0.80 (0.26%) today, slightly underperforming the S&P 500 (0.34%). Trading $2.45 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on Wednesday, NEE actually gained 1.54% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (NEE as at Oct 23, 2020):
Friday's trading range has been $3.91 (1.29%), that's below the last trading month's daily average range of $6.25. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for NEE.
Three candlestick patterns are matching today's price action, the Bearish Doji Star and the Northern Doji which are both known as bearish patterns and one neutral pattern, the Doji.
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 307.63 where further buy stops could get triggered. With prices trading close to this year's high at 308.06, upside momentum might accelerate should the share be able to break out to new highs for the year.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for NextEra Energy. Out of 400 times, NEE closed higher 58.00% 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 66.50% with an average market move of 0.98%.