NKY closes above its opening price after recovering from early selling pressure
Nikkei 225 Index (NKY) Technical Analysis Report for May 15, 2019 | by Techniquant Editorial Team
NKY ended Wednesday at 21188.56 gaining ¥121.33 (0.58%). Trading up to ¥144.77 lower after the open, the stock index managed to reverse during the session as bulls took control ending the day above its opening price. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (NKY as at May 15, 2019):
Wednesday's trading range has been ¥223.45 (1.06%), that's slightly above the last trading month's daily average range of ¥194.70. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for NKY.
After spiking up to 21191.53 during the day, the market found resistance at the 100-day moving average at 21189.98. The last time this happened on February 25th, NKY lost -0.37% on the following trading day.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and might now be heading back up towards the mean of the Bollinger Bands at 21859.67.
The trend is clearly bearish, showing an intact downtrend 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 crossed above the lower Bollinger Band" stand out. Its common bullish interpretation has been confirmed for Nikkei 225. Out of 67 times, NKY closed higher 62.69% 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 62.69% with an average market move of 1.32%.
With six out of the other six Major World Indices closing higher today, the ones that stand out on the positive side are NDX gaining 1.37% and DAX closing 0.9% higher. None of the markets ended the day in the red. Read more