NLSN closes lower for the 2nd day in a row
Nielsen N.V. (NLSN) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, NLSN finished the week 0.47% higher at 21.39 after losing $0.21 (-0.97%) today, strongly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading $0.20 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Thursday's low at 21.45, Nielsen N. V. confirmed its breakout through the previous session low after trading up to $0.15 below it intraday.
Daily Candlestick Chart (NLSN as at Feb 14, 2020):
Friday's trading range has been $0.50 (2.31%), that's slightly above the last trading month's daily average range of $0.44. 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 slightly lower than usual for NLSN.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar.
The share closed back below the 200-day moving average at 21.57. When this moving average was crossed below the last time on April 22, 2019, NLSN lost -1.80% on the following trading day. After having been unable to move above 21.75 in the prior session, the stock ran into sellers again around the same price level today, missing to move higher than 21.80.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Selling might speed up should prices move below the nearby swing low at 20.98 where further sell stops could get activated. With prices trading close to this year's high at 22.31, upside momentum might accelerate should NLSN be able to break out to new highs for the year.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 200" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Nielsen N. V.. Out of 40 times, NLSN closed higher 55.00% 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 55.00% with an average market move of 0.68%.