NBL finds buyers at key support level
Noble Energy Inc. (NBL) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 6th day in a row, NBL ended Thursday at 6.21 gaining $0.09 (1.47%), strongly underperforming the S&P 500 (6.24%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (NBL as at Mar 26, 2020):
Thursday's trading range has been $0.88 (14.67%), that's below the last trading month's daily average range of $1.26. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for NBL.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
After trading down to 5.85 earlier during the day, the stock bounced off the key technical support level at 5.87 (S1). The failure to close below the support might increase that levels significance as support going forward. After having been unable to move above 6.74 in the previous session, the share ran into sellers again around the same price level today, failing to move higher than 6.73. The last time this happened on March 20th, NBL actually gained 10.92% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 6.74 where further buy stops might get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Noble Energy. Out of 409 times, NBL closed higher 52.57% 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 53.79% with an average market move of 0.06%.