NOV finds buyers around 11.96 for the third day in a row
National Oilwell Varco Inc. (NOV) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
NOV finished the month -1.76% lower at 12.25 after gaining $0.10 (0.82%) today on high volume, underperforming the S&P 500 (1.54%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (NOV as at Jun 30, 2020):
Tuesday's trading range has been $0.42 (3.5%), that's far below the last trading month's daily average range of $0.77. 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. Prices continued to consolidate within a tight trading range between 11.87 and 12.52 where it has been caught now for the last three trading days.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a Bullish Short Candle showed up on May 7th, NOV gained 6.80% on the following trading day.
Prices are trading close to the key technical support level at 12.02 (S1). The share found buyers again today around 11.96 for the third trading day in a row after having found demand at 11.95 in the prior session and at 11.87 two days ago.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could accelerate should prices move above the close-by swing high at 12.52 where further buy stops might get activated. Further selling could move prices lower should the market test May's nearby low at 10.79.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous two Lows" stand out. Its common bullish interpretation has been confirmed for National Oilwell. Out of 85 times, NOV closed higher 54.12% 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 two trading days, showing a win rate of 55.29% with an average market move of 0.07%.