NSC breaks below Monday's low
Norfolk Southern Corporation (NSC) Technical Analysis Report for Jun 11, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, NSC finished Tuesday at 198.97 losing $2.44 (-1.21%), strongly underperforming the S&P 500 (-0.03%). Closing below Monday's low at 201.16, Norfolk Southern confirmed its breakout through the previous session low after trading up to $3.35 below it intraday.
Daily Candlestick Chart (NSC as at Jun 11, 2019):
Tuesday's trading range has been $6.25 (3.08%), that's far above the last trading month's daily average range of $3.89. 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 NSC.
One bearish candlestick pattern matches today's price action, the Black Candle.
After trading down to 197.81 earlier during the day, the share bounced off the key technical support level at 198.50 (S1). The failure to close below the support could increase that levels significance as support going forward. When prices bounced off a significant support level the last time on June 5th, NSC actually lost -1.53% on the following trading day. The market closed back below the 50-day moving average at 199.30 for the first time since June 3rd.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Further selling might move prices lower should the market test May's close-by low at 193.76.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Norfolk Southern. Out of 410 times, NSC closed higher 57.56% 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 59.27% with an average market move of 0.96%.