IXIC ends the day indecisive
Nasdaq Composite Index (IXIC) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, IXIC finished the month 6.82% higher at 10745.27 after gaining $157.46 (1.49%) today. Trading up to $183.80 lower after the open, the stock index managed to reverse during the session as bulls took control ending the day above its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (IXIC as at Jul 31, 2020):
Friday's trading range has been $190.10 (1.77%), that's slightly below the last trading month's daily average range of $194.85. 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.
Five candlestick patterns are matching today's price action, the Dragonfly Doji which is known as bullish pattern, three bearish patterns, the Bearish Doji Star, the Hanging Man and the Northern Doji and one neutral pattern, the Doji. The last time a Northern Doji showed up on July 17th, IXIC actually gained 2.51% on the following trading day.
Prices are trading close to the key technical resistance level at 10824.78 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 10839.93, upside momentum could accelerate should the market be able to break out to new highs for the year.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Dragonfly Doji" stand out. Its common bullish interpretation has been confirmed for Nasdaq Comp.. Out of 6 times, IXIC closed higher 83.33% 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 66.67% with an average market move of 1.21%.