SO closes above its opening price after recovering from early selling pressure
Southern Company (SO) Technical Analysis Report for Nov 09, 2018 | by Techniquant Editorial Team
SO finished the week 4.63% higher at 46.81 after gaining $0.23 (0.49%) today, significantly outperforming the S&P 500 (-0.92%). Trading up to $0.24 lower after the open, Southern managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on October 12th, SO gained 1.47% on the following trading day. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (SO as at Nov 09, 2018):
Friday's trading range has been $0.68 (1.46%), that's below the last trading month's daily average range of $0.89. 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 SO.
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 having been unable to move lower than 46.24 in the prior session, the market found buyers again around the same price level today at 46.32.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 47.22 where further buy stops could get activated.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous low" stand out. Its common bullish interpretation has been confirmed for Southern. Out of 563 times, SO closed higher 53.46% 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 58.26% with an average market move of 0.30%.