XEL closes within previous day's range
Xcel Energy Inc. (XEL) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, XEL finished the month 10.46% higher at 69.04 after edging higher $0.04 (0.06%) today, underperforming the S&P 500 (0.77%). Today's close at 69.04 marks the highest recorded closing price since March 6th. Trading up to $0.48 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (XEL as at Jul 31, 2020):
Friday's trading range has been $1.35 (1.97%), that's slightly below the last trading month's daily average range of $1.42. 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 XEL.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
Prices are trading close to the key technical support level at 68.90 (S1). After having been unable to move above 69.55 in the previous session, the stock ran into sellers again around the same price level today, missing to move higher than 69.39. The last time this happened on Wednesday, XEL actually gained 0.39% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 69.55 where further buy stops could get triggered. With prices trading close to this year's high at 72.14, upside momentum might accelerate should the share be able to break out to new highs for the year.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Xcel Energy. Out of 766 times, XEL closed higher 56.79% 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 62.14% with an average market move of 0.70%.