NKY finds support at 20-day moving average
Nikkei 225 Index (NKY) Technical Analysis Report for Jun 13, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, NKY finished Thursday at 21032.00 losing ¥97.72 (-0.46%). Trading ¥70.32 higher after the open, the index was unable to hold its gains as the bears took control ending the day below its opening price. 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 Jun 13, 2019):
Thursday's trading range has been ¥179.10 (0.85%), that's above the last trading month's daily average range of ¥149.67. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for NKY.
Three candlestick patterns are matching today's price action, the Doji, the Long-Legged Doji and the Rickshaw-Man which are known as neutral patterns. The last time a Rickshaw-Man showed up on December 26, 2018, NKY gained 3.88% on the following trading day.
After trading as low as 20932.13 during the day, the market found support at the 20-day moving average at 21006.03.
The Nikkei shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying might accelerate should prices move above the close-by swing high at 21259.70 where further buy stops could get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Long-Legged Doji" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Nikkei 225. Out of 8 times, NKY closed higher 62.50% 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 75.00% with an average market move of 2.95%.
With five out of the other six Major World Indices closing higher today, the ones that stand out on the positive side are NDX gaining 0.51% and DAX closing 0.44% higher. On the flipside the worst performer has been HSI closing -0.05% lower. Read more