NDX closes higher for the 3rd day in a row
Nasdaq 100 Index (NDX) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, NDX finished the month 7.37% higher at 10905.88 after gaining $190.37 (1.78%) today. Trading up to $179.00 lower after the open, Nasdaq managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on July 22nd, NDX actually lost -2.67% on the following trading day. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (NDX as at Jul 31, 2020):
Friday's trading range has been $200.94 (1.85%), that's slightly below the last trading month's daily average range of $214.87. 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.
One bearish candlestick pattern matches today's price action, the Hanging Man.
Prices are trading close to the key technical resistance level at 11017.43 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 11069.26, upside momentum might speed up should Nasdaq 100 be able to break out to new highs for the year.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Up Close near high of period" stand out. Its common bullish interpretation has been confirmed for Nasdaq 100. Out of 724 times, NDX closed higher 55.52% 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 64.92% with an average market move of 0.69%.
With four out of the other six Major World Indices closing lower today, the ones that stand out on the negative side are NKY losing -2.82% and FTSE closing -1.54% lower. On the flipside the best performers have been SPX closing 0.77% higher and DJIA gaining 0.44%. Read more