NRG closes within prior day's range
NRG Energy (NRG) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
NRG ended the week -2.23% lower at 36.37 after gaining $0.39 (1.08%) today, slightly underperforming the S&P 500 (1.42%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (NRG as at Oct 12, 2018):
Friday's trading range has been $0.92 (2.52%), that's above the last trading month's daily average range of $0.79. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for NRG.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on Monday, NRG actually gained 0.35% on the following trading day.
Prices are trading close to the key technical resistance level at 36.45 (R1).
While the share is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Selling could accelerate should prices move below the close-by swing low at 35.67 where further sell stops might get activated.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. Its common bearish interpretation has been confirmed for NRG Energy. Out of 203 times, NRG closed lower 52.22% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after seven trading days, showing a win rate of 48.77% with an average market move of -0.06%.