NKY climbs to highest close since July 30th
Nikkei 225 Index (NKY) Technical Analysis Report for Sep 11, 2019 | by Techniquant Editorial Team
Moving higher for the 7th day in a row, NKY finished Wednesday at 21597.76 gaining ¥205.66 (0.96%). Today's close at 21597.76 marks the highest recorded closing price since July 30th. The bulls were in full control today, moving the market higher throughout the whole session. 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 Sep 11, 2019):
Wednesday's trading range has been ¥181.39 (0.84%), that's above the last trading month's daily average range of ¥141.58. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for NKY.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 21474.30 (now S1), which is likely to act as support going forward. The last time this happened on September 5th, NKY gained 0.54% on the following trading day. Prices are trading close to the key technical resistance level at 21687.29 (R1).
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day although could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 20743.62.
While Nikkei 225 is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Trading close to July's high at 21823.07 we might see further upside momentum if potential buy stops at the level get triggered.
Among the seven 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 140 times, NKY closed higher 59.29% 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 62.86% with an average market move of 0.77%.
With six out of the other six Major World Indices closing higher today, the ones that stand out on the positive side are HSI gaining 1.78% and FTSE closing 0.96% higher. None of the markets ended the day in the red. Read more