NSC breaks below Tuesday's low
Norfolk Southern Corporation (NSC) Technical Analysis Report for Jun 24, 2020 | by Techniquant Editorial Team
NSC ended Wednesday at 169.15 losing $5.34 (-3.06%), slightly underperforming the S&P 500 (-2.59%). Today's close at 169.15 marks the lowest recorded closing price since May 19th. The bears were in full control today, moving the market lower throughout the whole session. Closing below Tuesday's low at 172.39, Norfolk Southern confirmed its breakout through the prior session low after trading up to $3.69 below it intraday.
Daily Candlestick Chart (NSC as at Jun 24, 2020):
Wednesday's trading range has been $5.23 (3.03%), that's slightly below the last trading month's daily average range of $5.64. 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 bearish candlestick pattern matches today's price action, the Black Candle.
The stock closed back below the 100-day moving average at 171.60. When this moving average was crossed below the last time on June 19th, NSC actually gained 0.71% on the following trading day.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling might speed up should prices move below the nearby swing low at 167.62 where further sell stops could get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 100" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Norfolk Southern. Out of 54 times, NSC closed higher 55.56% 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 1.24%.