IXIC closes above its opening price after recovering from early selling pressure
Nasdaq Composite Index (IXIC) Technical Analysis Report for Apr 22, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, IXIC finished Monday at 8015.27 gaining $17.21 (0.22%). Today's close at 8015.27 marks the highest recorded closing price since October 3, 2018. Trading up to $32.55 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on April 12th, IXIC actually lost -0.10% on the following trading day. Closing above Thursday's high at 8002.31, the index confirmed its breakout through the previous session high after trading up to $14.84 above it intraday.
Daily Candlestick Chart (IXIC as at Apr 22, 2019):
Monday's trading range has been $51.25 (0.64%), that's slightly below the last trading month's daily average range of $60.42. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for IXIC.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 8052.40 where further buy stops could get triggered. Selling might speed up should prices move below the nearby swing low at 7950.97 where further sell stops could get activated. 2018's high at 8133.30 is within reach and we might see further upside momentum should the Nasdaq manage to break out beyond.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Nasdaq Comp.. Out of 334 times, IXIC closed higher 59.28% 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 63.47% with an average market move of 0.52%.