NUS closes below its opening price unable to hold early session gains
Nu Skin Enterprises Inc. (NUS) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
NUS finished Wednesday at 52.32 losing $0.10 (-0.19%), but still slightly outperforming the S&P 500 (-0.46%). Trading $0.42 higher after the open, Nu Skin was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (NUS as at Sep 16, 2020):
Wednesday's trading range has been $0.95 (1.81%), that's below the last trading month's daily average range of $1.54. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for NUS.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on August 7th, NUS actually gained 1.71% on the following trading day.
Prices are trading close to the key technical support level at 51.95 (S1).
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day while might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 48.65.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Nu Skin. Out of 205 times, NUS closed higher 56.59% 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 five trading days, showing a win rate of 57.56% with an average market move of 0.13%.