NSC closes higher for the 3rd day in a row
Norfolk Southern Corporation (NSC) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, NSC finished Thursday at 146.92 gaining $6.52 (4.64%), strongly underperforming the S&P 500 (6.24%). 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 (NSC as at Mar 26, 2020):
Thursday's trading range has been $8.80 (6.15%), that's below the last trading month's daily average range of $11.21. 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 higher than usual for NSC.
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.
Prices are trading close to the key technical resistance level at 150.74 (R1). After having been unable to move above 150.74 in the prior session, Norfolk Southern ran into sellers again around the same price level today, missing to move higher than 149.10. The last time this happened on March 20th, NSC lost -3.90% on the following trading day.
While the share is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might accelerate should prices move above the close-by swing high at 150.74 where further buy stops could get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Norfolk Southern. Out of 157 times, NSC closed higher 56.69% 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 60.51% with an average market move of 0.45%.