NDX closes above its opening price after recovering from early selling pressure
Nasdaq 100 Index (NDX) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
NDX ended the week 2.78% higher at 6601.40 after losing $19.54 (-0.3%) today. Trading up to $17.85 lower after the open, Nasdaq managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on December 27, 2018, NDX actually lost -0.05% on the following trading day. 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 (NDX as at Jan 11, 2019):
Friday's trading range has been $42.52 (0.65%), that's far below the last trading month's daily average range of $170.60. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for NDX. Prices continued to consolidate within a tight trading range between 6412.98 and 6631.06 where it has been caught now for the whole last trading week.
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, 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 support level at 6534.33 (S1).
Although Nasdaq 100 is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might accelerate should prices move above the nearby swing high at 6631.06 where further buy stops could get activated. Selling might speed up should prices move below the close-by swing low at 6517.54 where further sell stops could get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Its common bullish interpretation has been confirmed for Nasdaq 100. Out of 156 times, NDX closed higher 58.97% 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 66.03% with an average market move of 0.54%.
With four out of the other six Major World Indices closing lower today, the ones that stand out on the negative side are FTSE losing -0.36% and DAX closing -0.31% lower. On the flipside the best performers have been NKY closing 0.97% higher and HSI gaining 0.55%. Read more