NLSN closes above its opening price after recovering from early selling pressure
Nielsen N.V. (NLSN) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 6th day in a row, NLSN finished the month -2.89% lower at 14.43 after edging lower $0.02 (-0.14%) today on high volume, underperforming the S&P 500 (0.77%). Today's close at 14.43 marks the lowest recorded closing price since July 9th. Trading up to $0.21 lower after the open, Nielsen N. V. 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 missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (NLSN as at Jul 31, 2020):
Friday's trading range has been $0.42 (2.91%), that's slightly above the last trading month's daily average range of $0.42. 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.
Four candlestick patterns are matching today's price action, the Southern Doji which is known as bullish pattern and three neutral patterns, the Doji, the Long-Legged Doji and the Rickshaw-Man.
Prices are trading close to the key technical resistance level at 14.71 (R1). After having been unable to move lower than 14.14 in the previous session, the market found buyers again around the same price level today at 14.20. The last time this happened on July 23rd, NLSN actually lost -1.45% on the following trading day.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling could speed up should prices move below the close-by swing low at 14.14 where further sell stops might get activated. Further selling could move prices lower should the market test June's nearby low at 13.75.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Long-Legged Doji" stand out. Though it is usually interpreted as neutral, it has actually shown to be bearish for Nielsen N. V.. Out of 33 times, NLSN closed lower 69.70% 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 60.61% with an average market move of -1.65%.