NDX finds buyers at key support level
Nasdaq 100 Index (NDX) Technical Analysis Report for Jul 10, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, NDX ended the week 4.78% higher at 10836.33 after gaining $81.74 (0.76%) today. Today's close at 10836.33 marks the highest recorded closing price ever. Trading up to $112.32 lower after the open, the stock index managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 10785.96, the market confirmed its breakout through the previous session high after trading up to $56.82 above it intraday.
Daily Candlestick Chart (NDX as at Jul 10, 2020):
Friday's trading range has been $203.30 (1.89%), that's slightly above the last trading month's daily average range of $194.79. 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 higher than usual for NDX.
After trading down to 10639.48 earlier during the day, Nasdaq bounced off the key technical support level at 10704.93 (S1). The failure to close below the support might increase that levels importance as support going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the seven 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 382 times, NDX closed higher 60.47% 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 63.09% with an average market move of 0.77%.
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 1.44% and DAX closing 1.15% higher. On the flipside the worst performers have been HSI closing -1.84% lower and NKY losing -1.06%. Read more