NBL dominated by bears dragging the market lower throughout the day
Noble Energy Inc. (NBL) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
NBL ended the week -4.44% lower at 19.16 after losing $0.44 (-2.24%) today, significantly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 19.16 marks the lowest recorded closing price since October 18, 2019. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 19.31, the stock confirmed its breakout through the previous session low after trading up to $0.23 below it intraday.
Daily Candlestick Chart (NBL as at Feb 14, 2020):
Friday's trading range has been $0.63 (3.2%), that's slightly below the last trading month's daily average range of $0.65. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for NBL.
Three candlestick patterns are matching today's price action, the Bullish Hikkake Pattern and the Last Engulfing Bottom Pattern which are both known as bullish patterns and one bearish pattern, the Black Candle. The last time a Bullish Hikkake Pattern showed up on January 21st, NBL actually lost -2.49% on the following trading day.
Prices are trading close to the key technical support level at 19.03 (S1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could speed up should prices move below the nearby swing low at 18.90 where further sell stops might get triggered. 2019's low at 17.98 is within reach and we could see further downside momentum should the market break out beyond.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Bottom Pattern" stand out. Its common bullish interpretation has been confirmed for Noble Energy. Out of 69 times, NBL closed higher 53.62% 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 65.22% with an average market move of 2.54%.