NSC closes above its opening price after recovering from early selling pressure
Norfolk Southern Corporation (NSC) Technical Analysis Report for Jun 22, 2020 | by Techniquant Editorial Team
NSC ended Monday at 171.47 gaining $1.21 (0.71%), slightly outperforming the S&P 500 (0.65%). Trading up to $2.36 lower after the open, Norfolk Southern managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on June 1st, NSC gained 3.21% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (NSC as at Jun 22, 2020):
Monday's trading range has been $3.88 (2.28%), that's below the last trading month's daily average range of $5.68. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for NSC.
Prices are trading close to the key technical resistance level at 175.32 (R1).
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 could speed up should prices move above the nearby swing high at 176.78 where further buy stops might get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Norfolk Southern. Out of 734 times, NSC closed higher 53.81% 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 59.26% with an average market move of 0.81%.