NOC closes higher for the 2nd day in a row
Northrop Grumman Corporation (NOC) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, NOC ended the week 2.63% higher at 370.94 after gaining $2.94 (0.8%) today on low volume, outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading up to $1.81 lower after the open, Northrop Grumman managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Wednesday, NOC gained 0.07% on the following trading day. Closing above Thursday's high at 370.47, the market confirmed its breakout through the prior session high after trading up to $1.17 above it intraday.
Daily Candlestick Chart (NOC as at Feb 14, 2020):
Friday's trading range has been $4.63 (1.26%), that's below the last trading month's daily average range of $7.17. Weekly volatility is also lower, being slightly 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 367.01 earlier during the day, the share bounced off the key technical support level at 367.10 (S1). The failure to close below the support might increase that levels importance as support going forward. Prices are trading close to the key technical resistance level at 374.22 (R1).
Although the stock is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might accelerate should prices move above the nearby swing high at 371.98 where further buy stops could get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Northrop Grumman. Out of 323 times, NOC closed higher 57.89% 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 63.47% with an average market move of 0.86%.