NBL finds buyers again around 8.61
Noble Energy Inc. (NBL) Technical Analysis Report for Jul 09, 2020 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, NBL finished Thursday at 8.64 losing $0.18 (-2.04%), significantly underperforming the S&P 500 (-0.56%). Today's close at 8.64 marks the lowest recorded closing price since May 14th. Trading $0.48 higher after the open, Noble Energy was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (NBL as at Jul 09, 2020):
Thursday's trading range has been $0.77 (8.65%), that's slightly above the last trading month's daily average range of $0.70. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for NBL.
Prices are trading close to the key technical support level at 8.56 (S1). After having been unable to move lower than 8.59 in the prior session, the share found buyers again around the same price level today at 8.61. The last time this happened on June 26th, NBL actually lost -5.05% on the following trading day.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling could speed up should prices move below the nearby swing low at 8.59 where further sell stops might get activated. Trading close to May's low at 7.73 we could see further downside momentum if potential sell stops at the level get triggered.
Among the six 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 400 times, NBL closed lower 53.50% 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 50.00% with an average market move of -0.16%.