NDX finds buyers at key support level
Nasdaq 100 Index (NDX) Technical Analysis Report for Apr 15, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, NDX finished Monday at 7629.12 edging higher $0.97 (0.01%). Today's close at 7629.12 marks the highest recorded closing price since October 3, 2018. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (NDX as at Apr 15, 2019):
Monday's trading range has been $58.26 (0.76%), that's slightly below the last trading month's daily average range of $72.89. 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 NDX. Prices continued to consolidate within a tight trading range between 7555.62 and 7636.80 where it has been caught now for the whole last trading week.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar. Additionally, three candlestick patterns are matching today's price action, the Hanging Man and the Northern Doji which are both known as bearish patterns and one neutral pattern, the Doji. The last time a Doji showed up on April 4th, NDX gained 0.51% on the following trading day.
After trading down to 7578.54 earlier during the day, Nasdaq bounced off the key technical support level at 7589.69 (S1). The failure to close below the support could increase that levels importance as support going forward. After having been unable to move above 7630.52 in the prior session, the stock index ran into sellers again around the same price level today, missing to move higher than 7636.80.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
2018's high at 7700.56 is within reach and we might see further upside momentum should the market manage to break out beyond.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Nasdaq 100. Out of 397 times, NDX closed higher 60.20% 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 61.96% with an average market move of 0.60%.
With four out of the other six Major World Indices closing lower today, the ones that stand out on the negative side are HSI losing -0.33% and DJIA closing -0.1% lower. On the flipside the best performers have been NKY closing 1.37% higher and DAX gaining 0.17%. Read more