SRE finds buyers at key support level
Sempra Energy (SRE) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
SRE finished the month -7.19% lower at 117.23 after losing $0.89 (-0.75%) today, significantly underperforming the S&P 500 (1.54%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (SRE as at Jun 30, 2020):
Tuesday's trading range has been $2.55 (2.16%), that's below the last trading month's daily average range of $4.02. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for SRE.
After trading down to 115.76 earlier during the day, the market bounced off the key technical support level at 117.18 (S1). The failure to close below the support could increase that levels importance as support going forward. When prices bounced off a significant support level the last time on June 25th, SRE actually lost -4.01% on the following trading day. The stock was sold again around 118.31 after having seen highs at 118.16, 117.94 and 118.46 in the last three trading sessions. Obviously there is something going on at that level.
The trend is clearly bearish, showing an intact downtrend 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 "High close to prior two Highs" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Sempra Energy. Out of 152 times, SRE closed higher 59.21% 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 57.24% with an average market move of 0.54%.