NDX finds buyers at key support level
Nasdaq 100 Index (NDX) Technical Analysis Report for Aug 10, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, NDX finished Monday at 11085.17 losing $54.22 (-0.49%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (NDX as at Aug 10, 2020):
Monday's trading range has been $217.51 (1.95%), that's slightly above the last trading month's daily average range of $190.43. Things look different on the weekly timeframe, where the market's trading range of the last week has been way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for NDX.
After trading down to 10941.87 earlier during the day, the index bounced off the key technical support level at 11017.43 (S1). The failure to close below the support might increase that levels importance as support going forward. When prices bounced off a significant support level the last time on August 4th, NDX gained 0.26% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 11282.24 where further buy stops might get triggered.
Among the three 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 384 times, NDX closed higher 60.68% 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 61.98% with an average market move of 0.75%.
With four out of the other five Major World Indices closing higher today, the ones that stand out on the positive side are DJIA gaining 1.3% and FTSE closing 0.31% higher. On the flipside the worst performer has been HSI closing -0.63% lower. Read more