NDX closes within prior day's range after lackluster session

Nasdaq 100 Index (NDX) Technical Analysis Report for Aug 20, 2019 | by Techniquant Editorial Team


NDX closes below its opening price unable to hold early session gains
NDX runs into sellers again around 7731.31
NDX closes within previous day's range after lackluster session


NDX ended Tuesday at 7664.47 losing $54.85 (-0.71%). Trading $23.00 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.

Daily Candlestick Chart (NDX as at Aug 20, 2019):

Daily technical analysis candlestick chart for Nasdaq 100 Index (NDX) as at Aug 20, 2019

Tuesday's trading range has been $67.10 (0.87%), that's below the last trading month's daily average range of $121.44. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for NDX.

During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns. The last time a Bearish Short Candle showed up on June 24th, NDX lost -1.70% on the following trading day.

Prices are trading close to the key technical support level at 7623.01 (S1). Prices are trading close to the key technical resistance level at 7748.23 (R1). After having been unable to move above 7740.74 in the previous session, the stock index ran into sellers again around the same price level today, failing to move higher than 7731.31.

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 7740.74 where further buy stops might get triggered.

Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Nasdaq 100. Out of 340 times, NDX closed higher 59.12% 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 68.24% with an average market move of 1.17%.

With five out of the other six Major World Indices closing lower today, the ones that stand out on the negative side are FTSE losing -0.9% and SPX closing -0.79% lower. On the flipside the best performer has been NKY closing 0.55% higher. Read more

Market Conditions for NDX as at Aug 20, 2019

Loading Market Conditions for NDX (Nasdaq 100 Index)...
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