NSC breaks back above 100-day moving average
Norfolk Southern Corporation (NSC) Technical Analysis Report for Jun 25, 2020 | by Techniquant Editorial Team
NSC ended Thursday at 171.68 gaining $2.53 (1.5%) on low volume, slightly outperforming the S&P 500 (1.1%). Trading up to $2.85 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (NSC as at Jun 25, 2020):
Thursday's trading range has been $5.89 (3.49%), that's slightly above the last trading month's daily average range of $5.59. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for NSC.
Norfolk Southern managed to close back above the 100-day moving average at 171.25. When this moving average was crossed above the last time on Tuesday, NSC actually lost -3.06% on the following trading day. Prices are trading close to the key technical resistance level at 175.32 (R1).
The share 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 175.80 where further buy stops might get activated.
Among the five 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 733 times, NSC closed higher 53.75% 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 59.07% with an average market move of 0.79%.