NUVA climbs to highest close since January 16th
NuVasive Inc. (NUVA) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, NUVA ended the week 4.4% higher at 79.29 after gaining $0.73 (0.93%) today, outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 79.29 marks the highest recorded closing price since January 16th. Trading up to $0.77 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 79.02, NuVasive confirmed its breakout through the prior session high after trading up to $0.36 above it intraday.
Daily Candlestick Chart (NUVA as at Feb 14, 2020):
Friday's trading range has been $1.55 (1.97%), that's slightly below the last trading month's daily average range of $1.71. 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 slightly lower than usual for NUVA.
Crossing above the upper Bollinger Band for the first time since January 14th, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 77.58 or signal the beginning of a strong momentum breakout leading to even higher prices. The last time prices broke out above the upper Bollinger Band on January 10th, NUVA gained 0.82% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 81.91, upside momentum might speed up should the share be able to break out to new highs for the year. As prices are trading close to February's high at 81.00, upside momentum could accelerate should the market mark new highs for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed above the upper Bollinger Band" stand out. Its common bullish interpretation has been confirmed for NuVasive. Out of 87 times, NUVA closed higher 54.02% 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 60.92% with an average market move of 0.42%.