NBR runs into sellers again around 37.02
Nabors Industries Ltd. (NBR) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, NBR finished the month -0.11% lower at 37.02 after gaining $1.13 (3.15%) today on low volume, strongly outperforming the S&P 500 (1.54%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 36.58, Nabors confirmed its breakout through the previous session high after trading up to $0.44 above it intraday.
Daily Candlestick Chart (NBR as at Jun 30, 2020):
Tuesday's trading range has been $2.75 (7.91%), that's far below the last trading month's daily average range of $8.24. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for NBR.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a Bullish Short Candle showed up on May 8th, NBR gained 23.73% on the following trading day.
Prices are trading close to the key technical support level at 33.08 (S1). After having been unable to move above 36.58 in the prior session, the market ran into sellers again around the same price level today, missing to move higher than 37.02.
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 close-by swing low at 32.21 where further sell stops might get triggered.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous High" stand out. Its common bearish interpretation has been confirmed for Nabors. Out of 507 times, NBR closed lower 53.65% 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 seven trading days, showing a win rate of 54.04% with an average market move of 0.04%.