SO finds buyers at key support level
Southern Company (SO) Technical Analysis Report for Aug 15, 2019 | by Techniquant Editorial Team
SO finished Thursday at 57.63 gaining $0.57 (1.0%), outperforming the S&P 500 (0.25%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (SO as at Aug 15, 2019):
Thursday's trading range has been $0.91 (1.59%), that's slightly below the last trading month's daily average range of $1.02. 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 SO.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Monday, SO actually lost -2.52% on the following trading day.
After trading down to 56.92 earlier during the day, the market bounced off the key technical support level at 57.08 (S1). The failure to close below the support could increase that levels significance as support going forward. After having been unable to move lower than 56.96 in the prior session, the stock found buyers again around the same price level today at 56.92.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the four 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 561 times, SO closed higher 54.37% 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 60.78% with an average market move of 0.42%.