MERV dominated by bulls lifting the market higher throughout the day
MERVAL Index (MERV) Technical Analysis Report for May 21, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, MERV ended Tuesday at 34481.33 gaining $988.85 (2.95%). Today's close at 34481.33 marks the highest recorded closing price since March 20th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 33628.24, MERVAL confirmed its breakout through the prior session high after trading up to $936.24 above it intraday.
Daily Candlestick Chart (MERV as at May 21, 2019):
Tuesday's trading range has been $1072.00 (3.2%), that's slightly below the last trading month's daily average range of $1075.15. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for MERV.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on May 16th, MERV actually lost -1.70% on the following trading day.
Buyers managed to take out the key technical resistance level at 33896.25 (now S1), which is likely to act as support going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Trading close to March's high at 35647.67 we might see further upside momentum if potential buy stops at the level get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Up Move" stand out. Its common bullish interpretation has been confirmed for MERVAL. Out of 653 times, MERV closed higher 57.12% 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 63.55% with an average market move of 2.05%.