NGVT enters Golden Cross for the first time since June 27, 2019
Ingevity Corporation (NGVT) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, NGVT ended Wednesday at 56.58 losing $0.50 (-0.88%) on high volume, slightly underperforming the S&P 500 (-0.46%). Closing below Tuesday's low at 56.61, the share confirmed its breakout through the prior session low after trading up to $0.13 below it intraday.
Daily Candlestick Chart (NGVT as at Sep 16, 2020):
Wednesday's trading range has been $1.80 (3.12%), that's slightly below the last trading month's daily average range of $1.91. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for NGVT.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
After spiking up to 58.28 during the day, the market found resistance at the 200-day moving average at 57.88. The last time this happened on September 2nd, NGVT lost -3.42% on the following trading day. After having been unable to move lower than 56.61 in the previous session, the stock found buyers again around the same price level today at 56.48.
Though Ingevity is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish. With its 50-day moving average crossing above its 200-day moving average, NGVT has entered a so-called "Golden Cross" for the first time since June 27, 2019. Showing increasing upward momentum in the short and medium-term the "Golden Cross" is known to indicate a potential bull market on the horizon.
Selling might accelerate should prices move below the nearby swing low at 56.10 where further sell stops could get triggered. As prices are trading close to September's low at 55.26, downside momentum might speed up should the share mark new lows for the month.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Golden Cross" stand out. Its common bullish interpretation has been confirmed for Ingevity. Out of 1 times, NGVT closed higher 100.00% 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 six trading days, showing a win rate of 100.00% with an average market move of 0.86%.