NI closes above its opening price after recovering from early selling pressure
NiSource Inc (NI) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, NI ended the month -4.57% lower at 22.74 after edging higher $0.05 (0.22%) today, notably underperforming the S&P 500 (1.54%). Trading up to $0.18 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. 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 Jun 30, 2020):
Tuesday's trading range has been $0.43 (1.89%), that's far below the last trading month's daily average range of $0.75. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for NI.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on April 28th, NI actually lost -3.43% on the following trading day.
Prices are trading close to the key technical support level at 22.34 (S1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 23.55 where further buy stops might get activated. Further selling could move prices lower should the market test May's nearby low at 21.45.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Spinning Top" stand out. Its common bullish interpretation has been confirmed for NiSource. Out of 213 times, NI closed higher 49.77% 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 62.44% with an average market move of 0.86%.