IXIC closes above its opening price after recovering from early selling pressure


Nasdaq Composite Index (IXIC) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team

Highlights

IXIC closes above its opening price after recovering from early selling pressure
IXIC finds buyers again around 9239.41
IXIC still stuck within tight trading range
IXIC closes within previous day's range after lackluster session

Overview

IXIC finished the week 3.44% higher at 9324.59 after edging higher $39.71 (0.43%) today ahead of tomorrow's Memorial Day market holiday. Trading up to $39.14 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 prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.

Daily Candlestick Chart (IXIC as at May 22, 2020):

Daily technical analysis candlestick chart for Nasdaq Composite Index (IXIC) as at May 22, 2020

Friday's trading range has been $88.87 (0.96%), that's far below the last trading month's daily average range of $157.60. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for IXIC. Prices continued to consolidate within a tight trading range between 9154.35 and 9405.25 where it has been caught now for the whole last trading week.

Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.

Prices are trading close to the key technical resistance level at 9329.12 (R1). After having been unable to move lower than 9254.85 in the prior session, Nasdaq Comp. found buyers again around the same price level today at 9239.41. The last time this happened on Tuesday, IXIC gained 2.08% on the following trading day.

The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.

Buying might speed up should prices move above the nearby swing high at 9405.25 where further buy stops could get triggered.

Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Nasdaq Comp.. Out of 732 times, IXIC closed higher 56.15% 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 63.25% with an average market move of 0.57%.


Market Conditions for IXIC as at May 22, 2020

Loading Market Conditions for IXIC (Nasdaq Composite Index)...
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