NOV closes within previous day's range after lackluster session
National Oilwell Varco Inc. (NOV) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
NOV finished the month -6.04% lower at 11.51 after flat today, underperforming the S&P 500 (0.77%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (NOV as at Jul 31, 2020):
Friday's trading range has been $0.29 (2.56%), that's below the last trading month's daily average range of $0.63. 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 slightly lower than usual for NOV.
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. Even with a weak opening National Oilwell managed to close above the prior day's open and close, forming a bullish Engulfing Candle. 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 June 30th, NOV actually lost -3.59% on the following trading day.
Prices are trading close to the key technical support level at 11.39 (S1).
Though the stock is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Selling might accelerate should prices move below the nearby swing low at 11.08 where further sell stops could get triggered. As prices are trading close to July's low at 10.74, downside momentum might speed up should the share mark new lows for the month.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for National Oilwell. Out of 65 times, NOV closed lower 55.38% of the time on the next trading day after the market condition occurred.