XEL pushes through key technical resistance level
Xcel Energy Inc. (XEL) Technical Analysis Report for Nov 09, 2018 | by Techniquant Editorial Team
XEL ended the week 5.49% higher at 50.34 after surging $1.01 (2.05%) today on high volume, strongly outperforming the S&P 500 (-0.92%). This is the biggest single-day gain in over two weeks. The last time we've seen such an unusually strong single-day gain on October 24th, XEL actually lost -1.65% on the following trading day. Today's close at 50.34 marks the highest recorded closing price since December 15, 2017. The bulls were in full control today, moving the market higher throughout the whole session. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (XEL as at Nov 09, 2018):
Friday's trading range has been $1.13 (2.29%), that's slightly above the last trading month's daily average range of $0.96. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for XEL.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 49.38 (now S1), which is likely to act as support going forward. Prices are trading close to the key technical resistance level at 50.53 (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 50.53, upside momentum might accelerate should the stock be able to break out to new highs for the year.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for Xcel Energy. Out of 313 times, XEL closed higher 49.52% 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 59.11% with an average market move of 0.39%.