NKY rises to highest close since December 3, 2018
Nikkei 225 Index (NKY) Technical Analysis Report for Apr 15, 2019 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, NKY finished Monday at 22169.11 gaining ¥298.55 (1.37%). Today's close at 22169.11 marks the highest recorded closing price since December 3, 2018.
Daily Candlestick Chart (NKY as at Apr 15, 2019):
Monday's trading range has been ¥108.10 (0.49%), that's below the last trading month's daily average range of ¥169.61. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for NKY.
Nikkei 225 managed to close above the 200-day moving average at 21885.81 for the first time since December 3, 2018. When this moving average was crossed above the last time on November 30, 2018, NKY gained 1.00% on the following trading day.
Crossing above the upper Bollinger Band for the first time since February 20th, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 21583.71 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close above the upper Bollinger Band" stand out. Its common bullish interpretation has been confirmed for Nikkei 225. Out of 138 times, NKY closed higher 57.97% 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 65.22% with an average market move of 0.76%.
With four out of the other six Major World Indices closing lower today, the ones that stand out on the negative side are HSI losing -0.33% and DJIA closing -0.1% lower. On the flipside the best performers have been DAX closing 0.17% higher and NDX gaining 0.01%. Read more