NBL closes above its opening price after recovering from early selling pressure
Noble Energy Inc. (NBL) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
NBL finished the week -0.25% lower at 31.61 after gaining $0.63 (2.03%) today on high volume, outperforming the S&P 500 (1.42%). Trading up to $0.58 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (NBL as at Oct 12, 2018):
Friday's trading range has been $0.95 (3.01%), that's above the last trading month's daily average range of $0.81. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for NBL.
Four candlestick patterns are matching today's price action, the Northern Doji which is known as bearish pattern and three neutral patterns, the Doji, the Long-Legged Doji and the Rickshaw-Man.
The market managed to break above the 20-day moving average at 31.18 today. When this moving average was crossed above the last time on September 17th, NBL gained 1.95% on the following trading day. Prices are trading close to the key technical resistance level at 32.20 (R1).
Although the share is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Rickshaw-Man" stand out. Though it is usually interpreted as neutral, it has actually shown to be bearish for Noble Energy. Out of 33 times, NBL closed lower 66.67% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 57.58% with an average market move of -0.78%.