NSC dominated by bears dragging the market lower throughout the day
Norfolk Southern Corporation (NSC) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
NSC ended Wednesday at 220.91 losing $1.12 (-0.5%), slightly underperforming the S&P 500 (-0.46%). The bears were in full control today, moving the market lower throughout the whole session. 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 Sep 16, 2020):
Wednesday's trading range has been $4.34 (1.94%), that's slightly above the last trading month's daily average range of $4.19. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for NSC.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on September 4th, NSC lost -1.12% on the following trading day.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and might now be heading back down towards the mean of the Bollinger Bands at 213.11.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Down Move" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Norfolk Southern. Out of 292 times, NSC closed higher 56.85% 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 57.88% with an average market move of 0.86%.