NI pops to highest close since May 5th
NiSource Inc (NI) Technical Analysis Report for Jun 01, 2020 | by Techniquant Editorial Team
NI finished Monday at 24.21 gaining $0.38 (1.59%), significantly outperforming the S&P 500 (0.38%). Today's close at 24.21 marks the highest recorded closing price since May 5th. Closing above Friday's high at 24.09, NiSource confirmed its breakout through the previous session high after trading up to $0.34 above it intraday.
Daily Candlestick Chart (NI as at Jun 01, 2020):
Monday's trading range has been $0.74 (3.11%), that's slightly above the last trading month's daily average range of $0.71. 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.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern.
The share managed to close above the 50-day moving average at 24.20 for the first time since April 29th. When this moving average was crossed above the last time on April 27th, NI gained 2.29% on the following trading day. After having been unable to move lower than 23.63 in the prior session, the stock found buyers again around the same price level today at 23.69.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Further buying could move prices higher should the market test May's nearby high at 24.88.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 50" stand out. Its common bullish interpretation has been confirmed for NiSource. Out of 87 times, NI closed higher 58.62% 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 70.11% with an average market move of 0.97%.