NRG misses to close above 20-day moving average
NRG Energy Inc. (NRG) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, NRG ended Thursday at 28.24 gaining $1.95 (7.42%) on low volume, strongly outperforming the S&P 500 (6.24%). Closing above Wednesday's high at 27.47, NRG Energy confirmed its breakout through the previous session high after trading up to $1.25 above it intraday.
Daily Candlestick Chart (NRG as at Mar 26, 2020):
Thursday's trading range has been $2.52 (9.48%), that's slightly above the last trading month's daily average range of $2.46. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for NRG.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Tuesday, NRG gained 2.06% on the following trading day.
After spiking up to 28.72 during the day, the share found resistance at the 20-day moving average at 28.64.
Although the stock is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 20" stand out. Its common bearish interpretation has been confirmed for NRG Energy. Out of 46 times, NRG closed lower 60.87% 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 10 trading days, showing a win rate of 54.35% with an average market move of -0.39%.