NUS breaks back above 20-day moving average
Nu Skin Enterprises Inc. (NUS) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
NUS finished the month 17.32% higher at 44.85 after losing $0.06 (-0.13%) today, underperforming the S&P 500 (0.77%). Trading up to $0.64 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. 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 (NUS as at Jul 31, 2020):
Friday's trading range has been $0.99 (2.22%), that's below the last trading month's daily average range of $1.51. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for NUS. Prices continued to consolidate within a tight trading range between 42.94 and 45.10 where it has been caught now for the whole last trading week.
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.
The share managed to close back above the 20-day moving average at 44.78. When this moving average was crossed above the last time on Wednesday, NUS gained 0.58% on the following trading day.
While the market is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might accelerate should prices move above the close-by swing high at 45.10 where further buy stops could get activated. Selling might speed up should prices move below the nearby swing low at 43.41 where further sell stops could get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. Its common bullish interpretation has been confirmed for Nu Skin. Out of 140 times, NUS closed higher 52.86% 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 62.86% with an average market move of 2.34%.