NSC runs into sellers again around 172.99
Norfolk Southern Corporation (NSC) Technical Analysis Report for Jun 29, 2020 | by Techniquant Editorial Team
NSC finished Monday at 172.68 gaining $2.87 (1.69%) on low volume, slightly outperforming the S&P 500 (1.47%). Trading up to $1.49 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Friday's high at 172.51, the share confirmed its breakout through the previous session high after trading up to $0.48 above it intraday.
Daily Candlestick Chart (NSC as at Jun 29, 2020):
Monday's trading range has been $3.93 (2.3%), that's below the last trading month's daily average range of $5.70. 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.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a Bullish Short Candle showed up on May 27th, NSC actually lost -2.55% on the following trading day.
Norfolk Southern managed to close back above the 100-day moving average at 170.42. Prices are trading close to the key technical resistance level at 175.32 (R1). After having been unable to move above 172.51 in the prior session, the market ran into sellers again around the same price level today, failing to move higher than 172.99.
NSC 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 triggered.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed above last periods high" stand out. Its common bullish interpretation has been confirmed for Norfolk Southern. Out of 457 times, NSC closed higher 54.70% 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 58.64% with an average market move of 0.65%.