NRG finds buyers again around 30.52
NRG Energy Inc. (NRG) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
NRG ended Wednesday at 30.92 gaining $0.32 (1.05%), notably outperforming the S&P 500 (-0.46%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (NRG as at Sep 16, 2020):
Wednesday's trading range has been $0.92 (3.01%), that's slightly below the last trading month's daily average range of $0.93. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for NRG.
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. After moving lower in the prior session, NRG Energy managed to close higher but below the previous day's open, forming a bullish Harami Candle.
Prices are trading close to the key technical support level at 30.47 (S1). After having been unable to move lower than 30.47 in the prior session, the share found buyers again around the same price level today at 30.52. The last time this happened on September 11th, NRG actually lost -0.22% on the following trading day.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and might now be heading back up towards the mean of the Bollinger Bands at 33.39.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could accelerate should prices move below the close-by swing low at 30.47 where further sell stops might get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed above the lower Bollinger Band" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for NRG Energy. Out of 70 times, NRG closed lower 52.86% 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 52.86% with an average market move of -0.83%.