NKY finds support at 200-day moving average
Nikkei 225 Index (NKY) Technical Analysis Report for Oct 11, 2018 | by Techniquant Editorial Team
NKY finished Thursday at 22590.86 tanking ¥915.18 (-3.89%). This is the biggest single-day loss in over six months. The last time this happened on August 13th, NKY gained 2.28% on the following trading day. Today's close at 22590.86 marks the lowest recorded closing price since September 10th. The bears were in full control today, moving the market lower throughout the whole session.
Daily Candlestick Chart (NKY as at Oct 11, 2018):
Thursday's trading range was ¥592.17 (2.57%), that's far above last trading month's daily average range of ¥240.43. Weekly volatility is also higher, being way above the markets average with the monthly volatility being slightly above average.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to a key support level at 22352.21. Breaking below the key support level at 22717.15 today, it is now likely to act as resistance going forward. After trading as low as 22459.02 during the day, the stock index found support at the 200-day moving average at 22507.46.
The Nikkei shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend being bullish. Nikkei 225 broke below the 100-day moving average at 22686.91 today for the first time since September 7th.
Further selling could move prices lower should the market test September's close-by low at 22172.90.
Among the 11 market conditions that our engine recognized today, the statistics for the Support/Resistance based condition "Bearish Break through SMA 50" stands out. Although it is usually interpreted being bearish, it has actually shown to be bullish so far in the past for Nikkei 225. Out of 103 times during the last ten years, NKY closed higher 61.17% of the time on the next trading day.
With six out of the other six Major World Indices closing lower today, the ones that stand out on the negative side are HSI losing -3.54% and DJIA closing -2.13% lower. None of the markets managed to end the day in the green. Read more