NKY closes higher for the 3rd day in a row
Nikkei 225 Index (NKY) Technical Analysis Report for Jan 14, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, NKY finished Tuesday at 24025.17 gaining ¥174.60 (0.73%). Today's close at 24025.17 marks the highest recorded closing price since December 17, 2019.
Daily Candlestick Chart (NKY as at Jan 14, 2020):
Tuesday's trading range has been ¥108.20 (0.45%), that's below the last trading month's daily average range of ¥152.37. Things look different on the weekly timeframe, where the market's trading range of the last week has been 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. The last time a White Candle showed up on January 9th, NKY gained 0.47% on the following trading day.
Prices are trading close to the key technical resistance level at 24091.12 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
2019's high at 24091.12 is within reach and we could see further upside momentum should the stock index manage to break out beyond.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Gap Up" stand out. Its common bullish interpretation has been confirmed for Nikkei 225. Out of 390 times, NKY closed higher 53.59% 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 58.72% with an average market move of 0.26%.
With three of the other Major World Indices closing higher and three closing lower today, the winners of the day are DJIA surging 0.11% and FTSE gaining 0.06%. On the flipside the worst performers have been NDX closing -0.41% lower and HSI losing -0.24%. Read more