NRG runs into sellers again around 32.85
NRG Energy Inc. (NRG) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
NRG ended the month -9.68% lower at 32.56 after losing $0.38 (-1.15%) today on low volume, significantly underperforming the S&P 500 (1.54%). 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 (NRG as at Jun 30, 2020):
Tuesday's trading range has been $0.57 (1.74%), that's far below the last trading month's daily average range of $1.19. 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 NRG. Prices continued to consolidate within a tight trading range between 31.24 and 32.99 where it has been caught now for the whole last trading week.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
Prices are trading close to the key technical support level at 32.06 (S1). The stock closed back below the 100-day moving average at 32.68. After having been unable to move above 32.96 in the previous session, the market ran into sellers again around the same price level today, missing to move higher than 32.85. The last time this happened on June 26th, NRG actually gained 4.34% on the following trading day.
NRG Energy shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the nearby swing high at 32.96 where further buy stops could get triggered. Further selling might move prices lower should the market test May's close-by low at 30.69.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for NRG Energy. Out of 528 times, NRG closed higher 50.95% 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 51.89% with an average market move of 0.35%.