IXIC pops to highest close since February 21st
Nasdaq Composite Index (IXIC) Technical Analysis Report for May 29, 2020 | by Techniquant Editorial Team
IXIC finished the month 6.75% higher at 9489.87 after gaining $120.88 (1.29%) today. Today's close at 9489.87 marks the highest recorded closing price since February 21st. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (IXIC as at May 29, 2020):
Friday's trading range has been $180.61 (1.92%), that's slightly above the last trading month's daily average range of $168.49. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for IXIC.
One bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical resistance level at 9523.64 (R1). After having been unable to move lower than 9345.28 in the prior session, Nasdaq Comp. found buyers again around the same price level today at 9324.73. The last time this happened on May 22nd, IXIC gained 0.17% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 9523.64 where further buy stops might get activated. With prices trading close to this year's high at 9838.37, upside momentum could speed up should the stock index be able to break out to new highs for the year.
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. While it is usually interpreted as neutral, it has actually shown to be bullish for Nasdaq Comp.. Out of 734 times, IXIC closed higher 56.13% 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 63.08% with an average market move of 0.57%.