IXIC stuck within tight trading range
Nasdaq Composite Index (IXIC) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
IXIC finished the week 3.45% higher at 6971.48 after edging lower $14.59 (-0.21%) today. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (IXIC as at Jan 11, 2019):
Friday's trading range has been $42.05 (0.61%), that's far below the last trading month's daily average range of $168.47. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for IXIC. Prices continued to consolidate within a tight trading range between 6877.08 and 6991.37 where it has been caught now for the last three trading days.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
The market ran into sellers again today around 6975.65 for the third trading day in a row after having found sellers at 6991.37 in the prior session and at 6985.22 two days ago. The last time this happened on November 16, 2018, IXIC lost -3.03% on the following trading day.
Although the stock index is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could accelerate should prices move above the nearby swing high at 6991.37 where further buy stops might get activated. Selling could speed up should prices move below the close-by swing low at 6877.08 where further sell stops might get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near high of period" stand out. Its common bullish interpretation has been confirmed for Nasdaq Comp.. Out of 872 times, IXIC closed higher 57.00% 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 61.70% with an average market move of 0.48%.