NKY finds support at 100-day moving average
Nikkei 225 Index (NKY) Technical Analysis Report for Jul 17, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, NKY finished Wednesday at 21469.18 losing ¥66.07 (-0.31%). 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 Jul 17, 2019):
Wednesday's trading range has been ¥107.72 (0.5%), that's below the last trading month's daily average range of ¥143.59. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for NKY.
Two candlestick patterns are matching today's price action, the Takuri Line which is known as bullish pattern and one bearish pattern, the Bearish Spinning Top. The last time a Takuri Line showed up on June 4th, NKY gained 1.80% on the following trading day.
After trading as low as 21380.55 during the day, the index found support at the 100-day moving average at 21443.11. Nikkei 225 closed below the 20-day moving average at 21488.70 for the first time since June 18th.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Nikkei 225. Out of 306 times, NKY closed higher 57.19% 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 62.75% with an average market move of 0.78%.
With six out of the other six Major World Indices closing lower today, the ones that stand out on the negative side are DAX losing -0.72% and SPX closing -0.65% lower. None of the markets managed to end the day in the green. Read more