Exelon Complex Inverted H&S PatternExelon is seeing gains with the energy sector as oil moves higher this week. Price has formed a complex inverted H&S pattern with price recently coming up off a second right shoulder and is currently testing the neckline. Price is currently trading above all MAs(8,21,34,50,100,200) and the shorter MA's are crossing above the longer MAs indicating a shift to bullish price trend.
The lower PPO indicator is showing the green PPO line rising above the purple signal line which is also rising, and indicates short-term bullish momentum. Both lines trending above the 0 level indicates intermediate to long-term bullish momentum.
The lower TDI indicator shows a rising green RSI line which just recently crossed above the 60 level and indicates a short-term bullish trend. The green RSI line is above the purple signal line and is currently trading outside of the upper Bollinger Band which is a bullish signal and you want to stay long while the RSI line is above the upper Bollinger Band... but caution is warranted because price tends to correct after the RSI falls back below the upper band.
Should price break up above the neckline it would be bullish going forward and start to validate the complex inverted H&S pattern. At current levels we'd be watching for a close and open above the neckline around the $43 area. Taking a measured move from the head to neckline we get $11. This $11 would then be added to breakout level of $43 which gives us a projected price target near $44.
My buy price on this trade is $42.17.
My stop-loss is currently set at $39.55.
Risk/loss on the trade is roughly -4%.
Potential gain is roughly +22%.
EXELON
EXELON MID-TERM BUY OPPORTUNITYLegendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.
In trading on Monday, shares of Exelon Corp (Symbol: EXC) entered into oversold territory, hitting an RSI reading of 29.7, after changing hands as low as $29.90 per share.
By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 29.0. A bullish investor could look at EXC's 29.7 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side.
Currently Exelon seems near the end of 2008-present time decline.
Continued Downside For ExelonOn May 16, Exelon Corporation crossed below its 150 day moving average (DMA) and 200 DMA. One day prior, the stock crossed above both moving averages. A double cross above followed by an immediate cross down has occurred four times in the history of the stock. The double up/double down has resulted in a minimal loss of 0.283%, median loss of 4.644% and maximum loss of 8.333% over the next 26 trading days. On its own, the stock has crossed below the 150 DMA 172 times and the 200 DMA 124 times and the stock does not always continue to drop. The cross below the 150 has resulted in a median loss of 3.927% and a maximum loss of 25.050%. The cross below the 200 DMA has led to a median loss of 4.287% and 21.391% over the following 26 trading days.
When we take a look at other technical indicators, the relative strength index (RSI) is at 47.3256. RSI tends to determine trends, overbought and oversold levels as well as likelihood of price swings. I personally use anything above 75 as overbought and anything under 25 as oversold. Currently the RSI is neutral and it could go any direction.
The true strength index (TSI) is currently -23.1234. The TSI determines overbought/oversold levels and/or current trend. I solely use this as an indicator of trend as overbought and oversold levels vary. The TSI is double smoothed in its calculation and is a great indicator of upward and downward movement. The current reading declares the stock has been moving down for most of 2017.
The positive vortex indicator (VI) is at 0.8414 and the negative is at 1.0547. When the positive level is higher than 1 and higher than the negative indicator, the overall price action is moving upward. When the negative level is higher than 1 and higher than the positive indicator, the overall price action is moving downward. Currently the negative and positive indicators are moving closer together, but near-term movement still favors more bearish action.
The stochastic oscillator K value is 60.6330 and D value is 36.1408. This is a cyclical oscillator that is highly accurate and can be used to identify overbought/oversold levels as well as pending reversals and short-term activity. I personally use anything above 80 as overbought and below 20 as oversold. When the K value is higher than the D value, the stock is trending up. When the D value is higher that the K value the stock is trending down. The stochastic is currently moving up The next few days will be key in determining if the stock will continue its downward movement. The K is currently higher and moving up, meaning the stock could move up.
Considering the RSI, TSI, VI and stochastic levels, the overall direction favors a move to the downside, although definitive downward movement may take a few more days to develop. Based on historical movement compared to current levels and the current position, the stock could drop at least 2% over the next 26 trading days if not sooner.
Two Bearish Crosses For ExelonOn April 21, 2017, the Exelon Corporation ( EXC ) 20 day moving average (DMA) crossed below its 50 DMA and the 200 DMA crossed below the 250 DMA. Both crosses have never occurred on the same day before and both crosses do not always result in a drop for the stock. Historically the 20 has crossed below the 50 DMA 93 times with a median drop of 4.412% and maximum drop of 30.837% over the next 20 trading days. Historically the 200 has crossed below the 250 DMA 19 times with a median drop of 5.612% and maximum drop of 35.336% over the next 20 trading days.
When we take a look at other technical indicators, the relative strength index (RSI) is at 39.2493. RSI tends to determine trends, overbought and oversold levels as well as likelihood of price swings. I personally use anything above 75 as overbought and anything under 25 as oversold. The current reading declares the stock is relatively neutral.
The true strength index (TSI) is currently -0.6979. The TSI determines overbought/oversold levels and/or current trend. I solely use this as an indicator of trend as overbought and oversold levels vary. The TSI is double smoothed in its calculation and is a great indicator of upward and downward movement. The current reading declares the stock is moving down.
The positive vortex indicator (VI) is at 0.8948 while the negative is at 1.1548. When the positive level is higher than 1 and higher than the negative indicator, the overall price action is moving upward. When the negative level is higher than 1 and higher than the positive indicator, the overall price action is moving downward. The current reading declares the stock has been moving down.
The stochastic oscillator K value is 16.3935 and D value is 28.1336. This is a cyclical oscillator that is highly accurate and can be used to identify overbought/oversold levels as well as pending reversals and short-term activity. I personally use anything above 80 as overbought and below 20 as oversold. When the K value is higher than the D value, the price action is trending up. When the D value is higher that the K value, price action is trending down. The current reading declares the stock is quickly approaching oversold territory. This is the only indicator suggesting potential upward movement, even if it is just in the short-term.
Considering the moving average crossover, RSI, TSI, VI and stochastic levels, the overall direction has the stock moving down. Based on historical movement compared to current levels and the current position in its trend channel, the stock could drop at least 0.73% over the next 19 trading days. I am watching many trend lines and channels for EXC. The stock has conformed well to use the trendlines as respective support and resistance levels. The stock should drop in the long run, but it may go up first. The smarter play is waiting for the stock to go up and short the drop to at least 34.90.
Exelon is DirectionlessOn March 31, 2017 the Exelon Corporation ( NYSE:EXC ) crossed above its 50 day MA for the fourth time in two weeks. Historically the 50 MA cross has occurred 348 times and the stock does not always rise. It has a median gain of 2.905 % and maximum gain of 18.413 % over the next 10 trading days.
When we take a look at other technical indicators, the relative strength index (RSI) is at 51.1549. RSI tends to determine overbought and oversold levels. I personally use anything above 75 as overbought and anything under 25 as oversold. The current reading declares the stock is neutral.
The true strength index (TSI) is currently 2.8606. The TSI determines overbought/oversold levels and/or current trend. I solely use this as an indicator of trend as overbought and oversold levels vary. The TSI is double smoothed in its calculation and is a great indicator of upward and downward movement. The current reading declares the stock is neutral and has been slowly trending down for two weeks.
Both vortex indicators (VI) are below 1 with the positive at 0.9213 and negative at 0.8946. The VI determines current trend and direction. When the positive level is higher than 1 and higher than the negative indicator, the overall price action is moving upward. When the negative level is higher than 1 and higher than the positive indicator, the overall price action is moving downward. The current reading declares the stock is neutral.
The stochastic oscillator K value is 43.8377 and D value is 43.5741. This is a cyclical oscillator that is highly accurate can be used to identify overbought/oversold levels as well as pending reversals. I personally use anything above 80 as overbought and below 20 as oversold. When the K value is higher than the D value, the stock is trending up. When the D value is higher that the K value the stock is trending down. The current reading declares the stock is neutral with future direction unknown.
Considering the moving average crossover, RSI, TSI, VI and stochastic levels, the overall near-term stock direction appears to be indiscernible. Based on historical movement compared to current levels and the current position, the stock could gain 1.18% over the next two weeks. The stock has been in a tight neutral channel throughout most of 2017. The last three time this crossover occurred in the last 15 days the stock rose at least 1%.
EXELON Channel sellingSignals:
double top
pennant
breakout of strong inclined support
Sell 34.10-39.80
Stop-loss 34.85 (+1 tic pennant's high)
Target #1 31.00 (sizing+strong support)
Target #2 28.00 (sizing+Elliot's waves+strong support)