NOC closes within previous day's range
Northrop Grumman Corporation (NOC) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
NOC finished the month 5.71% higher at 325.01 after edging lower $1.00 (-0.31%) today, notably underperforming the S&P 500 (0.77%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (NOC as at Jul 31, 2020):
Friday's trading range has been $8.38 (2.57%), that's slightly above the last trading month's daily average range of $8.14. 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.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Hanging Man. The last time a Hanging Man showed up on Wednesday, NOC actually gained 3.41% on the following trading day.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and might now be heading back down towards the mean of the Bollinger Bands at 306.68.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could speed up should prices move above the close-by swing high at 329.46 where further buy stops might get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Northrop Grumman. Out of 749 times, NOC closed higher 52.34% 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 60.75% with an average market move of 0.71%.