NCLH closes above its opening price after recovering from early selling pressure
Norwegian Cruise Line Holdings Ltd. (NCLH) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
NCLH ended Wednesday at 17.50 gaining $0.53 (3.12%), significantly outperforming the S&P 500 (-0.46%). Trading up to $0.39 lower after the open, the share 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.
Daily Candlestick Chart (NCLH as at Sep 16, 2020):
Wednesday's trading range has been $1.14 (6.66%), that's slightly above the last trading month's daily average range of $1.02. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for NCLH. Prices continued to consolidate within a tight trading range between 16.72 and 17.97 where it has been caught now for the last three trading days.
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.
Prices are trading close to the key technical resistance level at 18.17 (R1). The stock ran into sellers again today around 17.86 for the third trading day in a row after having found sellers at 17.84 in the prior session and at 17.97 two days ago. The last time this happened on August 17th, NCLH lost -1.23% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
As prices are trading close to September's low at 16.38, downside momentum might accelerate should the market mark new lows for the month.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bullish Intraday Reversal" stand out. Its common bullish interpretation has been confirmed for Norwegian Cruise. Out of 324 times, NCLH closed higher 49.69% 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 seven trading days, showing a win rate of 54.94% with an average market move of 0.40%.