NRG dominated by bulls lifting the market higher throughout the day
NRG Energy Inc. (NRG) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 6th day in a row, NRG finished the week 5.76% higher at 40.06 after gaining $0.50 (1.26%) today, strongly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 40.06 marks the highest recorded closing price since December 23, 2019. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 39.70, the market confirmed its breakout through the prior session high after trading up to $0.36 above it intraday.
Daily Candlestick Chart (NRG as at Feb 14, 2020):
Friday's trading range has been $0.55 (1.39%), that's below 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 above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for NRG.
One bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical resistance level at 40.07 (R1).
Crossing above the upper Bollinger Band for the first time since December 3, 2019, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 38.11 or signal the beginning of a strong momentum breakout leading to even higher prices. The last time prices broke out above the upper Bollinger Band on December 3, 2019, NRG actually lost -2.20% on the following trading day.
The stock shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Trading close to December's high at 40.99 we could see further upside momentum if potential buy stops at the level get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close above the upper Bollinger Band" stand out. Its common bullish interpretation has been confirmed for NRG Energy. Out of 184 times, NRG closed higher 53.80% 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 52.72% with an average market move of 0.18%.