NKY breaks back above 20-day moving average
Nikkei 225 Index (NKY) Technical Analysis Report for Jan 24, 2020 | by Techniquant Editorial Team
NKY finished the week -0.89% lower at 23827.18 after gaining ¥31.74 (0.13%) today. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (NKY as at Jan 24, 2020):
Friday's trading range has been ¥111.85 (0.47%), that's slightly below the last trading month's daily average range of ¥150.58. Weekly volatility is also lower, being below 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 Takuri Line. The last time a Takuri Line showed up on January 8th, NKY gained 2.31% on the following trading day.
The index managed to close back above the 20-day moving average at 23797.39. Prices are trading close to the key technical resistance level at 23875.82 (R1). After having been unable to move lower than 23779.23 in the prior session, the market found buyers again around the same price level today at 23757.53.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous low" stand out. Its common bullish interpretation has been confirmed for Nikkei 225. Out of 384 times, NKY closed higher 58.85% 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 56.77% with an average market move of 0.18%.
With three of the other Major World Indices closing higher and three closing lower today, the winners of the day are DAX surging 1.41% and FTSE gaining 1.04%. On the flipside the worst performers have been SPX closing -0.9% lower and NDX losing -0.82%. Read more