NCR finds support at 100-day moving average
NCR Corporation (NCR) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, NCR finished the month 6.41% higher at 18.43 after losing $0.30 (-1.6%) today, notably underperforming the S&P 500 (0.77%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (NCR as at Jul 31, 2020):
Friday's trading range has been $0.87 (4.7%), that's slightly above the last trading month's daily average range of $0.83. 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 NCR.
Three candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and two bearish patterns, the Bearish Spinning Top and the Hanging Man. The last time a Bearish Spinning Top showed up on Monday, NCR lost -4.84% on the following trading day.
After trading as low as 17.82 during the day, the share found support at the 100-day moving average at 18.01. Prices are trading close to the key technical resistance level at 18.90 (R1). After having been unable to move above 18.74 in the prior session, the market ran into sellers again around the same price level today, failing to move higher than 18.69.
Though the stock is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might speed up should prices move above the close-by swing high at 19.11 where further buy stops could get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 100" stand out. Its common bullish interpretation has been confirmed for NCR. Out of 21 times, NCR closed higher 57.14% 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 10 trading days, showing a win rate of 57.14% with an average market move of 1.24%.