NVT closes higher for the 4th day in a row
nVent Electric plc (NVT) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, NVT finished Wednesday at 18.69 gaining $0.07 (0.38%) on high volume, outperforming the S&P 500 (-0.46%). Trading $0.21 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on September 9th, NVT lost -2.53% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (NVT as at Sep 16, 2020):
Wednesday's trading range has been $0.40 (2.13%), that's slightly below the last trading month's daily average range of $0.41. 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 NVT.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
After spiking up to 18.95 during the day, the share found resistance at the 50-day moving average at 18.94.
Though the stock is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Selling could accelerate should prices move below the nearby swing low at 18.32 where further sell stops might get triggered. Further selling could move prices lower should the market test August's close-by low at 18.01.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 50" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for nVent Electric. Out of 14 times, NVT 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 four trading days, showing a win rate of 57.14% with an average market move of -0.01%.