NFG closes above its opening price after recovering from early selling pressure
National Fuel Gas Company (NFG) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, NFG finished the week 4.88% higher at 41.91 after edging higher $0.14 (0.34%) today, slightly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading up to $0.34 lower after the open, the market 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 (NFG as at May 22, 2020):
Friday's trading range has been $0.94 (2.26%), that's far below the last trading month's daily average range of $1.47. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for NFG. Prices continued to consolidate within a tight trading range between 40.37 and 42.15 where it has been caught now for the whole last trading week.
One bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on Monday, NFG lost -2.86% on the following trading day.
Prices are trading close to the key technical support level at 41.66 (S1). National Fuel was sold again around 42.15 after having seen highs at 41.95, 42.00 and 41.99 in the last three trading sessions. Obviously there is something going on at that level.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling could accelerate should prices move below the close-by swing low at 40.37 where further sell stops might get triggered. As prices are trading close to May's high at 42.37, upside momentum could speed up should the stock mark new highs for the month.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for National Fuel. Out of 162 times, NFG closed higher 56.17% of the time on the next trading day after the market condition occurred.