NOC closes higher for the 2nd day in a row
Northrop Grumman Corporation (NOC) Technical Analysis Report for Jul 02, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, NOC ended Thursday at 309.97 gaining $1.83 (0.59%) on low volume, slightly outperforming the S&P 500 (0.45%) ahead of tomorrow's Independence Day OBS market holiday. Trading $2.11 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (NOC as at Jul 02, 2020):
Thursday's trading range has been $4.62 (1.48%), that's below the last trading month's daily average range of $7.85. 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.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Prices are trading close to the key technical support level at 308.55 (S1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 317.00 where further buy stops could get triggered.
Among the five 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 322 times, NOC closed higher 57.14% 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 62.11% with an average market move of 0.80%.