NBL closes lower for the 3rd day in a row
Noble Energy Inc. (NBL) Technical Analysis Report for Jul 08, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, NBL finished Wednesday at 8.82 losing $0.12 (-1.34%), strongly underperforming the S&P 500 (0.78%). Trading $0.18 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on July 1st, NBL actually gained 7.79% on the following trading day. 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 Jul 08, 2020):
Wednesday's trading range has been $0.49 (5.5%), that's far below the last trading month's daily average range of $0.70. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for NBL.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Prices are trading close to the key technical support level at 8.52 (S1).
Noble Energy shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling could accelerate should prices move below the close-by swing low at 8.26 where further sell stops might get triggered. Trading close to May's low at 7.73 we could see further downside momentum if potential sell stops at the level get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Lower Closes" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Noble Energy. Out of 167 times, NBL closed higher 56.29% 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 seven trading days, showing a win rate of 53.29% with an average market move of 0.61%.