NSC closes lower for the 2nd day in a row
Norfolk Southern Corporation (NSC) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, NSC ended the week -0.39% lower at 209.35 after losing $1.14 (-0.54%) today on low volume, underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (NSC as at Feb 14, 2020):
Friday's trading range has been $2.42 (1.15%), that's below the last trading month's daily average range of $3.66. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for NSC.
Prices broke below the key technical support level at 209.40 (now R1), which is likely to act as resistance going forward. After having been unable to move lower than 209.00 in the prior session, the stock found buyers again around the same price level today at 208.79. The last time this happened on February 3rd, NSC gained 2.36% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could speed up should prices move below the nearby swing low at 207.66 where further sell stops might get triggered. As prices are trading close to February's low at 206.73, downside momentum could accelerate should Norfolk Southern mark new lows for the month.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Support S1" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Norfolk Southern. Out of 212 times, NSC closed higher 55.19% 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 59.91% with an average market move of 1.05%.