NSC pushes through Thursday's high
Norfolk Southern Corporation (NSC) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
NSC ended the month 9.48% higher at 192.21 after gaining $3.34 (1.77%) today, outperforming the S&P 500 (0.77%). Closing above Thursday's high at 191.08, the market confirmed its breakout through the previous session high after trading up to $2.14 above it intraday.
Daily Candlestick Chart (NSC as at Jul 31, 2020):
Friday's trading range has been $8.30 (4.43%), that's far above the last trading month's daily average range of $4.67. 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 slightly higher than usual for NSC. Prices continued to consolidate within a tight trading range between 184.21 and 193.88 where it has been caught now for the whole last trading week.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. The last time this happened on Monday, NSC actually lost -2.54% on the following trading day. Additionally, two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern.
After trading down to 184.92 earlier during the day, the share bounced off the key technical support level at 185.00 (S2). The failure to close below the support might increase that levels significance as support going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 193.88 where further buy stops might get activated. Further buying could move prices higher should the market test June's close-by high at 200.55.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S2" stand out. Its common bullish interpretation has been confirmed for Norfolk Southern. Out of 18 times, NSC closed higher 66.67% 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 66.67% with an average market move of 2.19%.