NKY ends the day indecisive
Nikkei 225 Index (NKY) Technical Analysis Report for Nov 08, 2018 | by Techniquant Editorial Team
NKY ended Thursday at 22486.92 gaining ¥401.12 (1.82%). Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (NKY as at Nov 08, 2018):
Thursday's trading range has been ¥162.43 (0.72%), that's far below the last trading month's daily average range of ¥344.39. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly lower than usual for NKY.
Nikkei 225 managed to close above the 200-day moving average at 22375.94 for the first time since October 22nd. When this moving average was crossed above the last time on October 16th, NKY gained 1.29% on the following trading day. Prices are trading close to the key technical resistance level at 22717.15 (R1).
Although the market 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 five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Close to S1 Support" stand out. Its common bullish interpretation has been confirmed for Nikkei 225. Out of 974 times, NKY closed higher 57.49% 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 57.08% with an average market move of 0.56%.
With three of the other Major World Indices closing higher and three closing lower following today's FOMC announcement, the winners of the day are FTSE surging 0.33% and HSI gaining 0.31%. On the flipside the worst performers have been NDX closing -0.62% lower and DAX losing -0.45%. Read more