NEU closes higher for the 2nd day in a row
NewMarket Corp (NEU) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, NEU ended the week -0.89% lower at 421.94 after gaining $3.26 (0.78%) today, outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday.
Daily Candlestick Chart (NEU as at Feb 14, 2020):
Friday's trading range has been $17.42 (4.05%), that's far above the last trading month's daily average range of $8.23. 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 higher than usual for NEU.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar. The last time this happened on January 24th, NEU lost -0.78% on the following trading day.
Prices are trading close to the key technical resistance level at 422.91 (R1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Outside Bar" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for NewMarket. Out of 136 times, NEU closed higher 60.29% 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 54.41% with an average market move of 0.87%.