NI plummets -1.36% closing $0.38 lower
NiSource Inc (NI) Technical Analysis Report for Apr 16, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, NI ended Tuesday at 27.60 tanking $0.38 (-1.36%), notably underperforming the S&P 500 (0.05%). This is the biggest single-day loss in over two weeks. Today's close at 27.60 marks the lowest recorded closing price since March 8th. Closing below Monday's low at 27.93, the share confirmed its breakout through the prior session low after trading up to $0.43 below it intraday.
Daily Candlestick Chart (NI as at Apr 16, 2019):
Tuesday's trading range has been $0.55 (1.97%), that's far above the last trading month's daily average range of $0.38. 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 lower than usual for NI.
One bearish candlestick pattern matches today's price action, the Black Candle.
After trading as low as 27.50 during the day, NiSource found support at the 50-day moving average at 27.51. The last time this happened on February 19th, NI actually lost -2.45% on the following trading day.
Although the market is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for NiSource. Out of 271 times, NI closed higher 54.61% 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 66.05% with an average market move of 1.22%.