NOC dominated by bulls lifting the market higher throughout the day
Northrop Grumman Corporation (NOC) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, NOC finished Thursday at 321.19 surging $32.83 (11.39%), strongly outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 301.98, the market confirmed its breakout through the prior session high after trading up to $19.94 above it intraday.
Daily Candlestick Chart (NOC as at Mar 26, 2020):
Thursday's trading range has been $31.29 (10.77%), that's far above the last trading month's daily average range of $22.44. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for NOC.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on March 18th, NOC actually lost -8.08% on the following trading day.
The share managed to close above the 20-day moving average at 311.77 for the first time since January 30th. Prices are trading close to the key technical resistance level at 325.85 (R1).
Though Northrop Grumman is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might speed up should prices move above the close-by swing high at 325.85 where further buy stops could get activated. As prices are trading close to March's high at 347.99, upside momentum might accelerate should the stock mark new highs for the month.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. Its common bullish interpretation has been confirmed for Northrop Grumman. Out of 141 times, NOC closed higher 55.32% 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 65.96% with an average market move of 0.94%.