ED stock price entered 2023 with a downtrend, forming lower lows and lower highs, while falling from the high of $98.94. During the start of March, the stock price formed support at $88 and started its journey to rise above $100. The price did rise above $100 and reached a yearly high at $100.50, but it could not stabilize above it. Bears did not find the price justifiable, which provoked a sell-off in the price.
Consolidated Edison stock price then consolidated between the range of $98 and $100.50 till the middle of May. The stock price shattered the support level of $88 on May 15 and melted down to form support near $90.50.
Recently, ED stock price has wrecked the support level of $90.50, but bulls pushed the price back above $90. The current move might be a retest of the previous zone, but the last candle has closed above $90, which is good for the price. If the stock price can enter the previous zone, it might head toward the resistance level of $94.
On the other hand, if the sell-off continues, the price might head down toward the major support of $88. The first quarter’s earning results were strong, beating the consensus estimates of revenue and earnings per share (EPS). The Quarter 2 earnings report is to be released on 3 August.
Consensus estimates the revenue to be $3.288 billion and EPS to be $0.664 for Q2, 2023. Consolidated Edison has made a payout for over 100 years and has increased its dividend for 49 consecutive years.
Will ED Stock Price Retest the $100.50 High Till End Of the Year?
The stock price trades below the 20,50,100 and 200-day EMAs, indicating that the price possesses bearish momentum. Chaikin money flow score is -0.15, indicating weakness in the market. The relative strength index (RSI) trades at 38.87, suggesting higher pressure from the selling side.
Although the stock has shown signs of bullishness in the past 2 days, the bearish pressure still hovers over the ED stock price. The bands of Bollinger have expanded, indicating that there is high volatility in the market.
The price crossed below the lower band of Bollinger, and buyers entered the market to push the price upwards. If bears can break the support of $88, the price might head toward $84, which would cause a loss of roughly 4.50%.
Conclusion
The market structure and price action of Consolidated Edison is bearish after the price has faced resistance from $100.50. The technical parameters are also favoring the selling side. Consolidated Edison has strong finances, but the company is going through a rough phase in terms of a decline in stock price.
Technical levels
Major support: $88 and $84
Major resistance: $94 and $98
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/07/03/consolidated-edison-ed-stock-price-rises-back-above-90-level/