XEL closes above its opening price after recovering from early selling pressure
Xcel Energy Inc. (XEL) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
XEL ended the week 4.28% higher at 60.37 after gaining $0.22 (0.37%) today, slightly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading up to $0.36 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. 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 May 22, 2020):
Friday's trading range has been $0.81 (1.35%), that's far below the last trading month's daily average range of $1.60. 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 XEL. Prices continued to consolidate within a tight trading range between 58.81 and 60.45 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.
Buyers managed to take out the key technical resistance level at 60.34 (now S1), which is likely to act as support going forward. The last time this happened on April 9th, XEL actually lost -3.94% on the following trading day. Xcel Energy was sold again around 60.45 after having seen highs at 60.37, 60.40 and 60.33 in the last three trading sessions. Obviously there is something going on at that level.
While the share 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 nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous low" stand out. Its common bullish interpretation has been confirmed for Xcel Energy. Out of 569 times, XEL closed higher 56.77% 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 64.15% with an average market move of 0.74%.