NBL dominated by bears dragging the market lower throughout the day
Noble Energy Inc. (NBL) Technical Analysis Report for Jul 13, 2020 | by Techniquant Editorial Team
NBL ended Monday at 8.67 losing $0.34 (-3.77%), strongly underperforming the S&P 500 (-0.94%). The bears were in full control today, moving the market lower throughout the whole session. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (NBL as at Jul 13, 2020):
Monday's trading range has been $0.58 (6.35%), that's slightly below the last trading month's daily average range of $0.66. 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 Black Candle. The last time a Black Candle showed up on July 7th, NBL lost -1.34% 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 9.38 where further buy stops might get triggered. Selling could speed up should prices move below the close-by swing low at 8.44 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 "Down Close Near Low of Period" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Noble Energy. Out of 512 times, NBL closed higher 50.59% 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 nine trading days, showing a win rate of 52.73% with an average market move of 0.43%.