NRG runs into sellers around 33.84 for the third day in a row
NRG Energy Inc. (NRG) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
NRG finished the month 3.84% higher at 33.81 after edging lower $0.04 (-0.12%) today, underperforming the S&P 500 (0.77%). Trading up to $0.43 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (NRG as at Jul 31, 2020):
Friday's trading range has been $0.80 (2.39%), that's slightly below the last trading month's daily average range of $0.91. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for NRG. Prices continued to consolidate within a tight trading range between 32.72 and 33.92 where it has been caught now for the last three trading days.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
The market ran into sellers again today around 33.84 for the third trading day in a row after having found sellers at 33.92 in the prior session and at 33.92 two days ago. The last time this happened on July 23rd, NRG actually gained 2.89% on the following trading day.
NRG Energy shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous two Highs" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for NRG Energy. Out of 121 times, NRG closed higher 56.20% 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 seven trading days, showing a win rate of 54.55% with an average market move of 0.08%.