NOV closes below its opening price unable to hold early session gains
National Oilwell Varco Inc. (NOV) Technical Analysis Report for Jul 12, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, NOV finished the week unchanged at 21.94 after losing $0.08 (-0.36%) today, underperforming the S&P 500 (0.46%). Trading $0.20 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Thursday's low at 21.99, the share confirmed its breakout through the prior session low after trading up to $0.09 below it intraday.
Daily Candlestick Chart (NOV as at Jul 12, 2019):
Friday's trading range has been $0.45 (2.03%), that's below the last trading month's daily average range of $0.60. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for NOV.
Despite a strong opening the market closed below the previous day's open and close, forming a bearish Engulfing Candle. The last time this candlestick pattern showed up on June 27th, NOV actually gained 3.73% on the following trading day.
Although National Oilwell is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might speed up should prices move above the close-by swing high at 22.50 where further buy stops could get triggered. Selling might accelerate should prices move below the nearby swing low at 21.43 where further sell stops could get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Engulfing Candle" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for National Oilwell. Out of 79 times, NOV closed higher 50.63% 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 four trading days, showing a win rate of 58.23% with an average market move of 0.21%.