Consolidated Edison Inc.(NYSE: ED) ED stock price has shown a double bottom pattern and has retested the support zone of $85 in the last trading sessions. Moreover, the price action showed the range-bound moves of ED stock and hovers between the trajectory swings of $80 – $100 and showed incisiveness between the bulls and bears. Furthermore, the chart shows that ED stock has delivered volatile swings for the past sessions. ED share price has split the channel lows of $80, which trapped the long positions. After that, ED stock reversed sharply and re-entered the channel, which trapped the short positions.
ED stock is close to retesting the 20-day EMA and is showing buying interest, and bulls are accumulating the stock to retain the swing of $90, followed by $100. Furthermore, the trajectory swing of $95 must be sustained for a reversal amid the reversal. For a significant reversal to catch the upside, ED stock must surpass the 200-day EMA above the upper trendline of $92, beyond the blue sky zone of $100, which can be retested if the momentum continues. As per the options chain, at the strike price of $90, indecisiveness was shown on the call side with an open interest of 399 hundred shares, whereas, on the put side, an open interest of 390 hundred shares shows a solid battle to watch out for the following sessions. Bulls and bears are trying their best to dominate the battle, but ED stock is hanging below $90.
At press time, ED stock price was $86.35 with an intraday gain of 1.88%, showing buying interest in yesterday’s market session. Moreover, the trading volume increased by 1.22% to 2.890 Million, and the market cap is $29.784 Billion. However, analysts maintained a neutral and underperform rating with a yearly target price of $87.93, which leads to a negative sentiment.
Consolidated Edison, Inc. is a holding company that engages in regulated electric, gas, and steam delivery. It operates through the following segments: Consolidated Edison Company of New York (CECONY), Orange and Rockland Utilities(O&R), Con Edison Clean Energy Businesses and Con Edison Transmission. The CECONY segment is involved in the regulated electric, gas, and steam utility businesses.
Will ED Stock Retain Gains Above $90 or Drag to $80?
On the daily charts, ED stock price is trading close to the make-or-break zone of $80, which, if it breaks, would produce a fresh downtrend towards $70, followed by $60. Conversely, if the ED share price holds gains above $80, a reversal toward $95 can be anticipated. Besides $95, if momentum continues, it will reach $100 and $110. However, ED share price has split the 38.2% Fib zone and is trying to sustain it. Moreover, ED stock slipped below the mid-bollinger band, showing a negative sign on the charts.
The RSI curve stayed below neutrality and showed a bearish divergence, indicating a negative crossover on the charts.
The MACD indicator showed a bearish crossover and formed red bars on the histogram, suggesting a bearish outlook for the upcoming sessions.
Summary
ED share price trades below the significant moving averages and shows a bearish outlook for the past sessions. Moreover, ED stock persists in forming the lower lows and staying below neutrality, indicating a drop in investor interest. ED stock is stuck in the congestion zone between $80 – $100.
Technical Levels
Support Levels: $80 and $75
Resistance Levels: $90 and $100
Disclaimer
The views and opinions stated by the author or any other person named in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto or stocks comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/10/08/ed-stock-nyse-ed-in-dilemma-will-ed-price-sustain-20-day-ema/