NTRS closes above its opening price after recovering from early selling pressure
Northern Trust Corporation (NTRS) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, NTRS ended the week -0.06% lower at 101.20 after edging lower $0.01 (-0.01%) today on low volume, slightly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading up to $0.81 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (NTRS as at Feb 14, 2020):
Friday's trading range has been $1.29 (1.28%), that's below the last trading month's daily average range of $2.12. 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 NTRS.
One bullish candlestick pattern matches today's price action, the Takuri Line. The last time a Takuri Line showed up on January 23rd, NTRS actually lost -2.35% on the following trading day.
Prices are trading close to the key technical support level at 101.09 (S1).
The market shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
With prices trading close to this year's low at 97.39, downside momentum might speed up should Northern Trust break out to new lows for the year.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Northern Trust. Out of 142 times, NTRS closed higher 63.38% 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 57.75% with an average market move of 0.47%.