NSC finds buyers again around 169.41
Norfolk Southern Corporation (NSC) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
NSC finished the week 6.93% higher at 171.47 after edging higher $0.91 (0.53%) today, slightly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading up to $1.74 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (NSC as at May 22, 2020):
Friday's trading range has been $2.81 (1.64%), that's far below the last trading month's daily average range of $5.40. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for NSC.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Prices are trading close to the key technical resistance level at 175.09 (R1). After having been unable to move lower than 168.83 in the previous session, Norfolk Southern found buyers again around the same price level today at 169.41. The last time this happened on May 11th, NSC actually lost -4.18% on the following trading day.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might speed up should prices move above the close-by swing high at 176.36 where further buy stops could get triggered. Selling might accelerate should prices move below the nearby swing low at 168.83 where further sell stops could get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Spinning Top" stand out. Its common bullish interpretation has been confirmed for Norfolk Southern. Out of 217 times, NSC closed higher 50.23% 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 65.90% with an average market move of 1.21%.