NTRS closes lower for the 2nd day in a row
Northern Trust Corporation (NTRS) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, NTRS ended the week 3.87% higher at 73.88 after edging lower $0.06 (-0.08%) today, slightly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. 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 May 22, 2020):
Friday's trading range has been $1.29 (1.74%), that's far below the last trading month's daily average range of $2.46. 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. Prices continued to consolidate within a tight trading range between 72.92 and 76.39 where it has been caught now for the whole last trading week.
Despite a strong opening Northern Trust closed below the previous day's open and close, forming a bearish Engulfing Candle. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Hikkake Pattern. The last time a Bullish Hikkake Pattern showed up on March 23rd, NTRS gained 10.70% on the following trading day.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could speed up should prices move above the nearby swing high at 76.39 where further buy stops might get triggered. As prices are trading close to May's high at 77.98, upside momentum could accelerate should the market mark new highs for the month.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Northern Trust. Out of 306 times, NTRS closed higher 52.29% 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 58.17% with an average market move of 0.47%.