VST still stuck within tight trading range
Vistra Energy Corp. (VST) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
VST finished Wednesday at 18.61 edging higher $0.19 (1.03%) on high volume, strongly outperforming the S&P 500 (-0.46%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (VST as at Sep 16, 2020):
Wednesday's trading range has been $0.53 (2.89%), that's slightly below the last trading month's daily average range of $0.54. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for VST. Prices continued to consolidate within a tight trading range between 17.93 and 18.88 where it has been caught now for the whole last trading week.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. Additionally, two candlestick patterns are matching today's price action, the Piercing Pattern and the White Candle which are both known as bullish patterns. The last time a White Candle showed up on Monday, VST actually lost -2.38% on the following trading day.
Prices are trading close to the key technical support level at 18.23 (S1). Prices are trading close to the key technical resistance level at 18.95 (R1). After having been unable to move lower than 18.36 in the previous session, the market found buyers again around the same price level today at 18.30.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Buying could accelerate should prices move above the close-by swing high at 18.88 where further buy stops might get triggered. As prices are trading close to September's high at 19.52, upside momentum could speed up should Vistra Energy mark new highs for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Piercing Pattern" stand out. Its common bullish interpretation has been confirmed for Vistra Energy. Out of 1 times, VST closed higher 100.00% 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 100.00% with an average market move of 3.38%.