SRE pushes through Wednesday's high
Sempra Energy (SRE) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, SRE ended Thursday at 123.60 gaining $9.58 (8.4%) on low volume, strongly 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 119.62, the stock confirmed its breakout through the previous session high after trading up to $5.66 above it intraday.
Daily Candlestick Chart (SRE as at Mar 26, 2020):
Thursday's trading range has been $15.25 (13.7%), that's far above the last trading month's daily average range of $10.00. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for SRE.
One bullish candlestick pattern matches today's price action, the White Candle.
The share managed to close above the 20-day moving average at 118.56 for the first time since February 20th. When this moving average was crossed above the last time on January 13th, SRE gained 0.03% on the following trading day.
Though the market is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. Its common bullish interpretation has been confirmed for Sempra Energy. Out of 163 times, SRE closed higher 55.83% 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 61.35% with an average market move of 0.68%.