NOC slips to lowest close since September 11th
Northrop Grumman Corporation (NOC) Technical Analysis Report for Oct 11, 2019 | by Techniquant Editorial Team
NOC finished the week -1.83% lower at 362.22 after losing $6.53 (-1.77%) today, strongly underperforming the S&P 500 (1.09%). Today's close at 362.22 marks the lowest recorded closing price since September 11th. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 366.54, Northrop Grumman confirmed its breakout through the prior session low after trading up to $7.81 below it intraday.
Daily Candlestick Chart (NOC as at Oct 11, 2019):
Friday's trading range has been $13.72 (3.68%), that's far above the last trading month's daily average range of $7.93. 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 lower than usual for NOC.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. Notwithstanding a strong opening the share closed below the previous day's open and close, forming a bearish Engulfing Candle. The last time this candlestick pattern showed up on October 1st, NOC lost -1.44% on the following trading day. Additionally, two candlestick patterns are matching today's price action, the Bearish Belt-hold and the Black Candle which are both known as bearish patterns.
The stock closed back below the 50-day moving average at 366.61 for the first time since October 3rd.
Though the market is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Belt-hold" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Northrop Grumman. Out of 20 times, NOC closed higher 55.00% 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 85.00% with an average market move of 1.23%.