NDX closes within previous day's range
Nasdaq 100 Index (NDX) Technical Analysis Report for Nov 08, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, NDX ended the week 1.16% higher at 8255.89 after gaining $36.24 (0.44%) today. Today's close at 8255.89 marks the highest recorded closing price ever. The bulls were in full control today, moving the market higher throughout the whole session. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (NDX as at Nov 08, 2019):
Friday's trading range has been $69.98 (0.85%), that's slightly above the last trading month's daily average range of $64.87. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for NDX.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern. The last time a Last Engulfing Top Pattern showed up on October 25th, NDX actually gained 1.01% on the following trading day.
Buyers managed to take out the key technical resistance level at 8229.09 (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.
Buying might speed up should prices move above the nearby swing high at 8271.82 where further buy stops could get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Top Pattern" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Nasdaq 100. Out of 91 times, NDX closed higher 58.24% 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 65.93% with an average market move of 0.67%.
With three of the other Major World Indices closing higher and three closing lower today, the winners of the day are NKY surging 0.26% and SPX gaining 0.26%. On the flipside the worst performers have been HSI closing -0.7% lower and FTSE losing -0.63%. Read more