NOC closes above its opening price after recovering from early selling pressure
Northrop Grumman Corporation (NOC) Technical Analysis Report for Oct 26, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, NOC ended Monday at 309.84 gaining $1.41 (0.46%), strongly outperforming the S&P 500 (-1.86%). Trading up to $3.70 lower after the open, Northrop Grumman managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on October 21st, NOC actually lost -1.74% on the following trading day. Closing above Friday's high at 309.56, the stock confirmed its breakout through the previous session high after trading up to $2.79 above it intraday.
Daily Candlestick Chart (NOC as at Oct 26, 2020):
Monday's trading range has been $10.65 (3.49%), that's far above the last trading month's daily average range of $7.46. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for NOC.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar.
Prices are trading close to the key technical support level at 307.69 (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 314.69 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 319 times, NOC closed higher 56.43% 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 61.44% with an average market move of 0.74%.