NFG finds support at 100-day moving average
National Fuel Gas Company (NFG) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, NFG finished the month -3.24% lower at 40.57 after losing $0.86 (-2.08%) today on high volume, strongly underperforming the S&P 500 (0.77%). Closing below Thursday's low at 40.58, National Fuel confirmed its breakout through the previous session low after trading up to $0.45 below it intraday.
Daily Candlestick Chart (NFG as at Jul 31, 2020):
Friday's trading range has been $1.31 (3.17%), that's above the last trading month's daily average range of $1.08. 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 slightly lower than usual for NFG.
One bearish candlestick pattern matches today's price action, the Black Candle.
After trading as low as 40.13 during the day, the market found support at the 100-day moving average at 40.18. The last time this happened on July 20th, NFG gained 2.62% on the following trading day. The share closed back below the 20-day moving average at 41.02 for the first time since July 20th. The stock ran into sellers again today around 41.44 for the third trading day in a row after having found sellers at 41.62 in the prior session and at 41.57 two days ago.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Buying might speed up should prices move above the nearby swing high at 41.62 where further buy stops could get triggered. As prices are trading close to July's low at 39.28, downside momentum might accelerate should NFG mark new lows for the month.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous two Highs" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for National Fuel. Out of 136 times, NFG closed higher 55.88% of the time on the next trading day after the market condition occurred.