NSC closes higher for the 2nd day in a row
Norfolk Southern Corporation (NSC) Technical Analysis Report for Jul 06, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, NSC finished Monday at 178.62 gaining $4.11 (2.36%), outperforming the S&P 500 (1.59%). Closing above Thursday's high at 177.73, the share confirmed its breakout through the prior session high after trading up to $1.93 above it intraday.
Daily Candlestick Chart (NSC as at Jul 06, 2020):
Monday's trading range has been $2.90 (1.63%), that's far below the last trading month's daily average range of $5.51. 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.
Norfolk Southern managed to close back above the 50-day moving average at 175.09 for the first time since June 30th. When this moving average was crossed above the last time on June 30th, NSC actually lost -2.31% on the following trading day.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the five 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 459 times, NSC closed higher 54.68% 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 58.39% with an average market move of 0.65%.