NTRS stuck within tight trading range
Northern Trust Corporation (NTRS) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
NTRS ended the month -1.25% lower at 78.35 after gaining $0.42 (0.54%) today on low volume, slightly underperforming the S&P 500 (0.77%). Trading up to $0.58 lower after the open, Northern Trust managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 78.17, the market confirmed its breakout through the previous session high after trading up to $0.26 above it intraday.
Daily Candlestick Chart (NTRS as at Jul 31, 2020):
Friday's trading range has been $1.08 (1.39%), that's below the last trading month's daily average range of $2.75. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for NTRS. Prices continued to consolidate within a tight trading range between 76.74 and 79.64 where it has been caught now for the last three trading days.
Prices are trading close to the key technical support level at 76.97 (S1). After having been unable to move above 78.17 in the prior session, the share ran into sellers again around the same price level today, failing to move higher than 78.43. The last time this happened on July 2nd, NTRS actually gained 1.33% 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 close-by swing high at 79.64 where further buy stops might get triggered. Selling could accelerate should prices move below the nearby swing low at 76.74 where further sell stops might get activated. As prices are trading close to July's high at 82.82, upside momentum could speed up should the stock mark new highs for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Northern Trust. Out of 707 times, NTRS closed higher 52.33% 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 57.28% with an average market move of 0.59%.