NSC unable to break through key resistance level
Norfolk Southern Corporation (NSC) Technical Analysis Report for Jun 23, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, NSC ended Tuesday at 174.49 gaining $3.02 (1.76%), strongly outperforming the S&P 500 (0.43%). Trading up to $1.41 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (NSC as at Jun 23, 2020):
Tuesday's trading range has been $3.42 (1.97%), that's far below the last trading month's daily average range of $5.57. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for NSC.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on June 1st, NSC gained 3.21% on the following trading day.
Norfolk Southern managed to close back above the 100-day moving average at 171.99. Unable to break through the key technical resistance level at 175.32 (R1), the stock closed below it after spiking up to 175.80 earlier during the day. The failure to close above the resistance could increase that levels importance going forward.
The market 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 176.78 where further buy stops could get activated.
Among the eight 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 218 times, NSC closed higher 50.46% 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 66.51% with an average market move of 1.30%.