SO closes higher for the 3rd day in a row
Southern Company (SO) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, SO ended Thursday at 55.14 gaining $5.00 (9.97%), significantly outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 52.00, the market confirmed its breakout through the previous session high after trading up to $3.80 above it intraday.
Daily Candlestick Chart (SO as at Mar 26, 2020):
Thursday's trading range has been $5.90 (11.8%), that's far above the last trading month's daily average range of $4.44. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently notably 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 Tuesday, SO gained 2.24% on the following trading day.
Prices are trading close to the key technical resistance level at 56.58 (R1).
Although the stock is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could speed up should prices move above the close-by swing high at 56.58 where further buy stops might get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Southern. Out of 777 times, SO closed higher 53.80% 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 56.76% with an average market move of 0.37%.