NBR closes above its opening price after recovering from early selling pressure
Nabors Industries Ltd. (NBR) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
NBR finished the month 14.56% higher at 42.41 after edging higher $0.06 (0.14%) today, underperforming the S&P 500 (0.77%). Trading up to $1.33 lower after the open, Nabors managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (NBR as at Jul 31, 2020):
Friday's trading range has been $2.33 (5.59%), that's below the last trading month's daily average range of $3.96. Weekly volatility is also lower, being slightly 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 Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern. The last time a Bullish Hikkake Pattern showed up on June 23rd, NBR actually lost -22.62% on the following trading day.
After trading as low as 40.37 during the day, the market found support at the 50-day moving average at 41.14. Prices are trading close to the key technical resistance level at 44.64 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 46.75 where further buy stops might get activated. Selling could accelerate should prices move below the close-by swing low at 39.50 where further sell stops might get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Top Pattern" stand out. Its common bearish interpretation has been confirmed for Nabors. Out of 49 times, NBR closed lower 65.31% 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 53.06% with an average market move of -0.90%.