NUS breaks back below 20-day moving average
Nu Skin Enterprises Inc. (NUS) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
NUS ended the month 2.82% higher at 38.23 after losing $0.51 (-1.32%) today, strongly underperforming the S&P 500 (1.54%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (NUS as at Jun 30, 2020):
Tuesday's trading range has been $1.15 (2.98%), that's slightly below the last trading month's daily average range of $1.30. 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 NUS.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. After moving higher in the previous session, the stock closed lower but above the prior day's open today, forming a bearish Harami Candle. The last time this candlestick pattern showed up on April 20th, NUS actually gained 2.76% on the following trading day.
Nu Skin closed back below the 20-day moving average at 38.30. After having been unable to move lower than 37.60 in the previous session, the market found buyers again around the same price level today at 37.72.
Although the share is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could speed up should prices move above the nearby swing high at 38.92 where further buy stops might get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 20" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Nu Skin. Out of 140 times, NUS 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 58.57% with an average market move of 1.96%.