NI finds buyers at key support level
NiSource Inc (NI) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, NI finished the week 1.38% higher at 30.21 after edging higher $0.02 (0.07%) today, slightly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 30.21 marks the highest recorded closing price since September 26, 2019. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (NI as at Feb 14, 2020):
Friday's trading range has been $0.23 (0.76%), that's far below the last trading month's daily average range of $0.36. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly lower than usual for NI.
After trading down to 30.06 earlier during the day, the stock bounced off the key technical support level at 30.11 (S1). The failure to close below the support could increase that levels significance as support going forward. When prices bounced off a significant support level the last time on Tuesday, NI actually lost -0.33% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
2019's high at 30.67 is within reach and we might see further upside momentum should NiSource manage to break out beyond.
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 468 times, NI closed higher 54.91% 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 64.74% with an average market move of 1.04%.