NOV soars, gaining $0.61 (5.39%) within a single day
National Oilwell Varco Inc. (NOV) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, NOV finished Wednesday at 11.93 surging $0.61 (5.39%), strongly outperforming the S&P 500 (-0.46%). This is the biggest single-day gain in over a month.
Daily Candlestick Chart (NOV as at Sep 16, 2020):
Wednesday's trading range has been $0.76 (6.58%), that's far above the last trading month's daily average range of $0.41. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for NOV.
National Oilwell managed to close above the 20-day moving average at 11.83 for the first time since August 28th. When this moving average was crossed above the last time on August 28th, NOV actually lost -2.60% on the following trading day. After spiking up to 12.10 during the day, the stock found resistance at the 50-day moving average at 11.94.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
As prices are trading close to September's high at 12.50, upside momentum could accelerate should the share mark new highs for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) above 80" stand out. Its common bearish interpretation has been confirmed for National Oilwell. Out of 275 times, NOV closed lower 50.91% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 54.55% with an average market move of -0.48%.