NLSN rises to highest close since August 19th
Nielsen N.V. (NLSN) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, NLSN ended Wednesday at 15.71 gaining $0.33 (2.15%), significantly outperforming the S&P 500 (-0.46%). Today's close at 15.71 marks the highest recorded closing price since August 19th. Closing above Tuesday's high at 15.66, the market confirmed its breakout through the prior session high after trading up to $0.28 above it intraday.
Daily Candlestick Chart (NLSN as at Sep 16, 2020):
Wednesday's trading range has been $0.68 (4.4%), that's above the last trading month's daily average range of $0.50. Weekly volatility is also higher, being way above 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 previous day's high as well as below the prior day's low, forming a bullish Outside Bar.
After trading down to 15.26 earlier during the day, the share bounced off the key technical support level at 15.35 (S1). The failure to close below the support might increase that levels significance as support going forward. Unable to break through the key technical resistance level at 15.83 (R1), the stock closed below it after spiking up to 15.94 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. After having been unable to move lower than 15.30 in the previous session, Nielsen N. V. found buyers again around the same price level today at 15.26. The last time this happened on September 11th, NLSN gained 6.00% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 16.05 where further buy stops could get triggered. As prices are trading close to September's high at 16.05, upside momentum might accelerate should NLSN mark new highs for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Higher Closes" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Nielsen N. V.. Out of 65 times, NLSN closed lower 61.54% 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 63.08% with an average market move of -1.38%.