NLSN finds buyers around 13.40 for the third day in a row
Nielsen N.V. (NLSN) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
NLSN ended the week 6.92% higher at 13.59 after edging higher $0.17 (1.27%) today, notably 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 (NLSN as at May 22, 2020):
Friday's trading range has been $0.26 (1.93%), that's far below the last trading month's daily average range of $0.66. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for NLSN. Prices continued to consolidate within a tight trading range between 13.24 and 13.99 where it has been caught now for the whole last trading week.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, 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 stock managed to close back above the 50-day moving average at 13.45. When this moving average was crossed above the last time on Wednesday, NLSN actually lost -1.25% on the following trading day. The share found buyers again today around 13.40 for the third trading day in a row after having found demand at 13.31 in the prior session and at 13.37 two days ago.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 13.99 where further buy stops might get activated. Selling could speed up should prices move below the close-by swing low at 13.31 where further sell stops might get triggered. As prices are trading close to May's high at 14.47, upside momentum could accelerate should the market mark new highs for the month.
Among the 10 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. While it is usually interpreted as bullish, it has actually shown to be bearish for Nielsen N. V.. Out of 105 times, NLSN closed lower 60.95% 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 59.05% with an average market move of -1.16%.