NRZ rises to highest close since November 14, 2018
New Residential Investment Corp. (NRZ) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, NRZ finished the week 2.26% higher at 17.63 after gaining $0.13 (0.74%) today, outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 17.63 marks the highest recorded closing price since November 14, 2018. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 17.60, New Residential confirmed its breakout through the previous session high after trading up to $0.03 above it intraday.
Daily Candlestick Chart (NRZ as at Feb 14, 2020):
Friday's trading range has been $0.18 (1.03%), that's slightly below the last trading month's daily average range of $0.22. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for NRZ.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern. The last time a Last Engulfing Top Pattern showed up on January 30th, NRZ lost -0.36% on the following trading day.
After having been unable to move lower than 17.43 in the prior session, the market found buyers again around the same price level today at 17.45.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 17.63 where further buy stops could get activated.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous low" stand out. Its common bullish interpretation has been confirmed for New Residential. Out of 362 times, NRZ closed higher 51.66% 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 10 trading days, showing a win rate of 56.91% with an average market move of 0.70%.