NNN still stuck within tight trading range
National Retail Properties (NNN) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
NNN ended the month 13.03% higher at 35.48 after edging lower $0.25 (-0.7%) today, strongly underperforming the S&P 500 (1.54%). Trading $0.36 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on June 8th, NNN lost -5.24% on the following trading day. 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 (NNN as at Jun 30, 2020):
Tuesday's trading range has been $0.96 (2.69%), that's far below the last trading month's daily average range of $1.84. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for NNN. Prices continued to consolidate within a tight trading range between 34.15 and 36.71 where it has been caught now for the whole last trading week.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Prices are trading close to the key technical support level at 34.81 (S1). The stock ran into sellers again today around 35.99 for the third trading day in a row after having found sellers at 35.99 in the previous session and at 35.90 two days ago.
National Retail shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the nearby swing high at 37.37 where further buy stops could get triggered. Selling might speed up should prices move below the close-by swing low at 34.38 where further sell stops could get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for National Retail. Out of 568 times, NNN closed higher 54.93% 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 60.74% with an average market move of 0.74%.