NSP closes within prior day's range after lackluster session
Insperity Inc. (NSP) Technical Analysis Report for Apr 16, 2019 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, NSP finished Tuesday at 128.61 losing $0.25 (-0.19%), slightly underperforming the S&P 500 (0.05%). The bears were in full control today, moving the market lower throughout the whole session. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (NSP as at Apr 16, 2019):
Tuesday's trading range has been $2.00 (1.54%), that's below the last trading month's daily average range of $2.75. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for NSP. Prices continued to consolidate within a tight trading range between 128.00 and 130.41 where it has been caught now for the last three trading days.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar. Even with a strong opening the market closed below the prior day's open and close, forming a bearish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
The share was bought again around 128.00 after having seen lows at 128.04, 128.17 and 127.95 in the last three trading sessions. Obviously there is something going on at that level. The last time this happened on February 14th, NSP gained 3.70% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 130.41 where further buy stops might get triggered. With prices trading close to this year's high at 132.50, upside momentum could accelerate should Insperity be able to break out to new highs for the year. As prices are trading close to April's high at 130.45, upside momentum might speed up should the stock mark new highs for the month.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous three Lows" stand out. Its common bullish interpretation has been confirmed for Insperity. Out of 21 times, NSP closed higher 57.14% 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 61.90% with an average market move of 1.36%.