NDX breaks above 20-day moving average for the first time since February 21st
Nasdaq 100 Index (NDX) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
NDX finished Thursday at 7897.13 gaining $427.51 (5.72%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 7777.61, Nasdaq 100 confirmed its breakout through the previous session high after trading up to $135.50 above it intraday.
Daily Candlestick Chart (NDX as at Mar 26, 2020):
Thursday's trading range has been $363.28 (4.81%), that's slightly below the last trading month's daily average range of $421.26. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for NDX.
One bullish candlestick pattern matches today's price action, the White Candle.
The stock index managed to close above the 20-day moving average at 7877.54 for the first time since February 21st. When this moving average was crossed above the last time on February 3rd, NDX gained 2.28% on the following trading day. Prices are trading close to the key technical resistance level at 7998.51 (R1).
Although Nasdaq is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed above last periods high" stand out. Its common bullish interpretation has been confirmed for Nasdaq 100. Out of 425 times, NDX closed higher 57.88% 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 62.59% with an average market move of 0.43%.
With four out of the other six Major World Indices closing higher today, the ones that stand out on the positive side are DJIA gaining 6.38% and SPX closing 6.24% higher. On the flipside the worst performers have been NKY closing -4.51% lower and HSI losing -0.74%. Read more