NSC breaks back above 20-day moving average
Norfolk Southern Corporation (NSC) Technical Analysis Report for Jul 13, 2020 | by Techniquant Editorial Team
NSC ended Monday at 175.13 surging $4.28 (2.51%), strongly outperforming the S&P 500 (-0.94%). This is the biggest single-day gain in over a month.
Daily Candlestick Chart (NSC as at Jul 13, 2020):
Monday's trading range has been $6.13 (3.56%), that's above the last trading month's daily average range of $4.95. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for NSC.
One bullish candlestick pattern matches today's price action, the Morning Doji Star.
Norfolk Southern managed to close back above the 20-day moving average at 173.69. When this moving average was crossed above the last time on July 8th, NSC actually lost -2.48% on the following trading day. After spiking up to 177.41 during the day, the share found resistance at the 50-day moving average at 175.42.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Further selling could move prices lower should the market test June's close-by low at 166.00.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. Its common bullish interpretation has been confirmed for Norfolk Southern. Out of 140 times, NSC closed higher 50.00% 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 56.43% with an average market move of 0.95%.