NBL breaks above 100-day moving average for the first time since June 8th
Noble Energy Inc. (NBL) Technical Analysis Report for Jul 14, 2020 | by Techniquant Editorial Team
NBL ended Tuesday at 9.60 surging $0.93 (10.73%), notably outperforming the S&P 500 (1.34%). This is the biggest single-day gain in over a month. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 9.19, the share confirmed its breakout through the previous session high after trading up to $0.41 above it intraday.
Daily Candlestick Chart (NBL as at Jul 14, 2020):
Tuesday's trading range has been $1.08 (12.5%), that's far above the last trading month's daily average range of $0.66. 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.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. The last time this happened on June 25th, NBL actually lost -7.42% on the following trading day. Notwithstanding a weak opening the stock managed to close above the prior day's open and close, forming a bullish Engulfing Candle. Additionally, two candlestick patterns are matching today's price action, the Bullish Closing Marubozu and the White Candle which are both known as bullish patterns.
The market managed to close above the 100-day moving average at 9.15 for the first time since June 8th. After having been unable to move lower than 8.61 in the previous session, Noble Energy found buyers again around the same price level today at 8.52.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Further selling might move prices lower should the market test June's close-by low at 8.26.
Among the 15 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Outside Bar" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Noble Energy. Out of 100 times, NBL closed lower 56.00% of the time on the next trading day after the market condition occurred.