NOC breaks below key technical support level
Northrop Grumman Corporation (NOC) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
NOC ended the month -8.28% lower at 307.44 after losing $1.58 (-0.51%) today, significantly underperforming the S&P 500 (1.54%). 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 (NOC as at Jun 30, 2020):
Tuesday's trading range has been $4.82 (1.56%), that's far below the last trading month's daily average range of $8.18. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for NOC.
Prices broke below the key technical support level at 308.55 (now R1), which is likely to act as resistance going forward. The last time this happened on June 23rd, NOC lost -1.69% on the following trading day. After having been unable to move lower than 303.33 in the previous session, the share found buyers again around the same price level today at 304.40.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 317.00 where further buy stops could get activated. Trading close to April's low at 290.62 we might see further downside momentum if potential sell stops at the level get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior low" stand out. Its common bullish interpretation has been confirmed for Northrop Grumman. Out of 512 times, NOC closed higher 52.54% 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 63.48% with an average market move of 0.99%.