SRE dominated by bulls lifting the market higher throughout the day
Sempra Energy (SRE) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, SRE ended the week 1.49% higher at 160.96 after surging $1.96 (1.23%) today on low volume, strongly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. This is the biggest single-day gain in over two weeks. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 159.79, the share confirmed its breakout through the previous session high after trading up to $1.17 above it intraday.
Daily Candlestick Chart (SRE as at Feb 14, 2020):
Friday's trading range has been $1.34 (0.84%), that's far below the last trading month's daily average range of $1.99. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for SRE.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a Bullish Short Candle showed up on August 21, 2019, SRE actually lost -0.50% on the following trading day.
Prices are trading close to the key technical resistance level at 161.38 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 161.87, upside momentum might accelerate should Sempra Energy be able to break out to new highs for the year.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near high of period" stand out. Its common bullish interpretation has been confirmed for Sempra Energy. Out of 652 times, SRE closed higher 51.53% 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 57.98% with an average market move of 0.40%.