NOC closes within previous day's range
Northrop Grumman Corporation (NOC) Technical Analysis Report for Jul 10, 2020 | by Techniquant Editorial Team
NOC finished the week -5.8% lower at 292.00 after gaining $6.05 (2.12%) today on high volume, significantly outperforming the S&P 500 (1.05%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (NOC as at Jul 10, 2020):
Friday's trading range has been $7.41 (2.58%), that's slightly below the last trading month's daily average range of $7.92. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for NOC.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. After moving lower in the prior session, the share managed to close higher but below the previous day's open, forming a bullish Harami Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 308.37. The last time this happened on March 24th, NOC gained 2.52% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might speed up should prices move below the nearby swing low at 285.49 where further sell stops could get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Harami Candle" stand out. Its common bullish interpretation has been confirmed for Northrop Grumman. Out of 32 times, NOC closed higher 59.38% 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 62.50% with an average market move of 0.95%.