ED finds buyers at key support level
Consolidated Edison Inc. (ED) Technical Analysis Report for Oct 27, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, ED ended Tuesday at 83.05 gaining $0.31 (0.37%), outperforming the S&P 500 (-0.3%). Today's close at 83.05 marks the highest recorded closing price since April 28th. Trading up to $0.73 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on October 22nd, ED gained 0.20% on the following trading day. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (ED as at Oct 27, 2020):
Tuesday's trading range has been $1.70 (2.05%), that's above the last trading month's daily average range of $1.42. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ED.
Two candlestick patterns are matching today's price action, the Bullish High-Wave Candle and the Bullish Spinning Top which are both known as bullish patterns.
After trading down to 82.22 earlier during the day, the share bounced off the key technical support level at 82.70 (S1). The failure to close below the support might increase that levels importance as support going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish High-Wave Candle" stand out. Its common bullish interpretation has been confirmed for Consolidated Edison. Out of 22 times, ED closed higher 63.64% 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 77.27% with an average market move of 0.71%.