NKY dominated by bulls lifting the market higher throughout the day
Nikkei 225 Index (NKY) Technical Analysis Report for Oct 09, 2019 | by Techniquant Editorial Team
NKY ended Wednesday at 21456.38 losing ¥131.40 (-0.61%). The bulls were in full control today, moving the market higher throughout the whole session.
Daily Candlestick Chart (NKY as at Oct 09, 2019):
Wednesday's trading range has been ¥107.93 (0.51%), that's below the last trading month's daily average range of ¥144.35. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for NKY.
One bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical resistance level at 21474.30 (R1).
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Buying could speed up should prices move above the close-by swing high at 21629.24 where further buy stops might get triggered. Selling could accelerate should prices move below the nearby swing low at 21276.01 where further sell stops might get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Nikkei 225. Out of 614 times, NKY closed higher 52.61% 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 56.84% with an average market move of 0.38%.
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 1.13% and DAX closing 1.04% higher. On the flipside the worst performer has been HSI closing -0.81% lower. Read more