NI finds buyers again around 22.84
NiSource Inc (NI) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
NI ended the week 3.22% higher at 23.09 after gaining $0.10 (0.43%) today, slightly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (NI as at May 22, 2020):
Friday's trading range has been $0.29 (1.26%), that's far below the last trading month's daily average range of $0.74. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for NI. Prices continued to consolidate within a tight trading range between 22.84 and 23.58 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a White Candle showed up on April 24th, NI gained 0.85% on the following trading day.
After having been unable to move lower than 22.93 in the previous session, the stock found buyers again around the same price level today at 22.84.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 23.48 where further buy stops could get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for NiSource. Out of 735 times, NI closed higher 51.97% 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 60.00% with an average market move of 0.54%.