NBL dominated by bulls lifting the market higher throughout the day
Noble Energy Inc. (NBL) Technical Analysis Report for Jul 02, 2020 | by Techniquant Editorial Team
NBL finished Thursday at 9.55 gaining $0.69 (7.79%), significantly outperforming the S&P 500 (0.45%) ahead of tomorrow's Independence Day OBS market holiday. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 9.29, the stock confirmed its breakout through the previous session high after trading up to $0.36 above it intraday.
Daily Candlestick Chart (NBL as at Jul 02, 2020):
Thursday's trading range has been $0.55 (6.04%), that's far below the last trading month's daily average range of $0.77. 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.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
After spiking up to 9.65 during the day, the share found resistance at the 50-day moving average at 9.59. The last time this happened on November 14, 2019, NBL lost -2.93% on the following trading day.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could speed up should prices move above the nearby swing high at 9.88 where further buy stops might get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 50" stand out. Its common bearish interpretation has been confirmed for Noble Energy. Out of 26 times, NBL closed lower 65.38% 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 46.15% with an average market move of -0.51%.