IXIC pops to highest close ever
Nasdaq Composite Index (IXIC) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
IXIC finished the week 2.21% higher at 9731.18 after gaining $19.21 (0.2%) today ahead of tomorrow's Presidents' Day market holiday. Today's close at 9731.18 marks the highest recorded closing price ever. Trading up to $35.85 lower after the open, the Nasdaq managed to reverse during the session as bulls took control ending the day above 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 (IXIC as at Feb 14, 2020):
Friday's trading range has been $53.31 (0.55%), that's far below the last trading month's daily average range of $97.37. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for IXIC. Prices continued to consolidate within a tight trading range between 9650.02 and 9748.32 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, four candlestick patterns are matching today's price action, the Bearish Doji Star, the Bearish Harami Cross Pattern and the Northern Doji which are known as bearish patterns and one neutral pattern, the Doji. The last time a Doji showed up on January 9th, IXIC lost -0.27% on the following trading day.
After having been unable to move above 9748.32 in the prior session, the market ran into sellers again around the same price level today, failing to move higher than 9746.36.
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 9748.32 where further buy stops could get activated. Selling might speed up should prices move below the nearby swing low at 9650.02 where further sell stops could get triggered.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Doji Star" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Nasdaq Comp.. Out of 12 times, IXIC closed higher 58.33% 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 75.00% with an average market move of 0.93%.