NOC closes lower for the 2nd day in a row
Northrop Grumman Corporation (NOC) Technical Analysis Report for Jul 16, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, NOC ended Tuesday at 323.83 losing $1.44 (-0.44%), slightly underperforming the S&P 500 (-0.34%). Closing below Monday's low at 324.20, Northrop Grumman confirmed its breakout through the previous session low after trading up to $1.20 below it intraday.
Daily Candlestick Chart (NOC as at Jul 16, 2019):
Tuesday's trading range has been $3.76 (1.15%), that's below the last trading month's daily average range of $4.79. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for NOC.
After trading down to 323.00 earlier during the day, the market bounced off the key technical support level at 323.73 (S1). The failure to close below the support could increase that levels importance as support going forward. When prices bounced off a significant support level the last time on July 12th, NOC actually lost -1.29% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
As prices are trading close to July's low at 317.88, downside momentum might speed up should the stock mark new lows for the month.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Northrop Grumman. Out of 290 times, NOC closed higher 60.34% 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 66.55% with an average market move of 1.26%.