NI finds buyers at key support level
NiSource Inc (NI) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
NI ended Wednesday at 26.77 edging lower $0.01 (-0.04%) on high volume, slightly underperforming the S&P 500 (0.3%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (NI as at Feb 13, 2019):
Wednesday's trading range has been $0.23 (0.86%), that's far below the last trading month's daily average range of $0.43. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly lower than usual for NI.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
After trading down to 26.61 earlier during the day, the stock bounced off the key technical support level at 26.63 (S1). The failure to close below the support might increase that levels significance as support going forward. When prices bounced off a significant support level the last time on February 7th, NI actually lost -0.11% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 26.96 where further buy stops might get triggered. With prices trading close to this year's high at 27.30, upside momentum could accelerate should the market be able to break out to new highs for the year. As prices are trading close to February's high at 27.21, upside momentum might speed up should NiSource mark new highs for the month.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for NiSource. Out of 475 times, NI closed higher 52.84% 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 62.53% with an average market move of 1.01%.