XEL closes higher for the 3rd day in a row
Xcel Energy Inc. (XEL) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, XEL ended Wednesday at 70.92 gaining $0.51 (0.72%), significantly outperforming the S&P 500 (-0.46%). Trading up to $0.45 lower after the open, Xcel Energy managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (XEL as at Sep 16, 2020):
Wednesday's trading range has been $1.16 (1.64%), that's below the last trading month's daily average range of $1.51. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for XEL.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
After trading down to 70.18 earlier during the day, the share bounced off the key technical support level at 70.39 (S1). The failure to close below the support might increase that levels significance as support going forward. When prices bounced off a significant support level the last time on September 8th, XEL gained 2.14% on the following trading day. After having been unable to move above 71.15 in the previous session, the stock ran into sellers again around the same price level today, failing to move higher than 71.34.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 71.35 where further buy stops might get triggered. With prices trading close to this year's high at 73.00, upside momentum could speed up should the market be able to break out to new highs for the year. As prices are trading close to September's high at 72.43, upside momentum might accelerate should XEL 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 "Close to Swing High" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Xcel Energy. Out of 757 times, XEL closed higher 57.20% 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 62.88% with an average market move of 0.73%.