NOMD pushes through key technical resistance level
Nomad Foods Limited (NOMD) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 9th day in a row, NOMD ended the month 7.51% higher at 23.06 after gaining $0.28 (1.23%) today, slightly outperforming the S&P 500 (0.77%). Today's close at 23.06 marks the highest recorded closing price ever. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 22.88, Nomad Foods confirmed its breakout through the prior session high after trading up to $0.24 above it intraday.
Daily Candlestick Chart (NOMD as at Jul 31, 2020):
Friday's trading range has been $0.36 (1.58%), that's below the last trading month's daily average range of $0.43. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for NOMD.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 22.94 (now S1), which is likely to act as support going forward. The last time this happened on July 14th, NOMD gained 0.42% on the following trading day.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day although might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 21.65.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "52 Week High" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Nomad Foods. Out of 72 times, NOMD closed lower 54.17% of the time on the next trading day after the market condition occurred.