NRG breaks back above 200-day moving average
NRG Energy Inc. (NRG) Technical Analysis Report for Jan 15, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, NRG finished Wednesday at 38.13 gaining $0.63 (1.68%), strongly outperforming the S&P 500 (0.19%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Tuesday's high at 37.51, the market confirmed its breakout through the prior session high after trading up to $0.89 above it intraday.
Daily Candlestick Chart (NRG as at Jan 15, 2020):
Wednesday's trading range has been $1.02 (2.73%), that's far above the last trading month's daily average range of $0.70. 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 significantly higher than usual for NRG.
One bullish candlestick pattern matches today's price action, the White Candle.
The stock managed to close back above the 200-day moving average at 37.76 for the first time since January 3rd. When this moving average was crossed above the last time on October 3, 2019, NRG gained 1.29% on the following trading day. Unable to break through the key technical resistance level at 38.39 (R1), NRG Energy closed below it after spiking up to 38.40 earlier during the day. The failure to close above the resistance might increase that levels significance going forward.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for NRG Energy. Out of 276 times, NRG closed higher 53.99% 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 57.61% with an average market move of 0.75%.