NOC unable to break through key resistance level
Northrop Grumman Corporation (NOC) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
NOC finished Wednesday at 343.47 gaining $5.45 (1.61%) on high volume, significantly outperforming the S&P 500 (-0.46%). Closing above Tuesday's high at 339.95, the stock confirmed its breakout through the previous session high after trading up to $6.94 above it intraday.
Daily Candlestick Chart (NOC as at Sep 16, 2020):
Wednesday's trading range has been $11.15 (3.31%), that's far above the last trading month's daily average range of $6.62. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for NOC.
One bullish candlestick pattern matches today's price action, the White Candle.
Northrop Grumman managed to close back above the 20-day moving average at 340.52 for the first time since September 3rd. When this moving average was crossed above the last time on July 21st, NOC gained 2.53% on the following trading day. Unable to break through the key technical resistance level at 344.00 (R1), the share closed below it after spiking up to 346.89 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. After having been unable to move lower than 334.73 in the prior session, the market found buyers again around the same price level today at 335.74.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
As prices are trading close to September's high at 352.12, upside momentum might accelerate should NOC mark new highs for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Northrop Grumman. Out of 426 times, NOC closed higher 59.86% 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 59.39% with an average market move of 0.83%.