NBL closes within previous day's range after lackluster session
Noble Energy Inc. (NBL) Technical Analysis Report for Jul 01, 2020 | by Techniquant Editorial Team
NBL finished Wednesday at 8.86 edging lower $0.10 (-1.12%), significantly underperforming the S&P 500 (0.5%). Trading $0.31 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on May 11th, NBL lost -3.54% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (NBL as at Jul 01, 2020):
Wednesday's trading range has been $0.55 (6.12%), that's far below the last trading month's daily average range of $0.77. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for NBL.
Prices are trading close to the key technical support level at 8.47 (S1).
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling might accelerate should prices move below the nearby swing low at 8.26 where further sell stops could get activated. Trading close to May's low at 7.73 we might see further downside momentum if potential sell stops at the level get triggered.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. Its common bearish interpretation has been confirmed for Noble Energy. Out of 399 times, NBL closed lower 53.38% 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 50.13% with an average market move of -0.15%.