NLSN closes higher for the 3rd day in a row
Nielsen N.V. (NLSN) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, NLSN finished Thursday at 13.81 edging higher $0.19 (1.4%), notably underperforming the S&P 500 (6.24%). Trading up to $0.22 lower after the open, the stock 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 (NLSN as at Mar 26, 2020):
Thursday's trading range has been $0.57 (4.19%), that's far below the last trading month's daily average range of $1.23. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for NLSN.
One bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern.
Prices are trading close to the key technical support level at 12.81 (S1). Prices are trading close to the key technical resistance level at 14.35 (R1). After having been unable to move above 13.95 in the previous session, the share ran into sellers again around the same price level today, missing to move higher than 13.97. The last time this happened on March 18th, NLSN lost -5.85% on the following trading day.
Although the market is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might accelerate should prices move above the nearby swing high at 14.35 where further buy stops could get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Nielsen N. V.. Out of 141 times, NLSN closed lower 56.74% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 56.03% with an average market move of -0.51%.