NKY breaks below Wednesday's low

Nikkei 225 Index (NKY) Technical Analysis Report for Sep 17, 2020 | by Techniquant Editorial Team


NKY breaks below key technical support level
NKY breaks below Wednesday's low


NKY finished Thursday at 23319.37 losing ¥156.16 (-0.67%). Closing below Wednesday's low at 23397.43, the Nikkei confirmed its breakout through the prior session low after trading up to ¥125.20 below it intraday.

Daily Candlestick Chart (NKY as at Sep 17, 2020):

Daily technical analysis candlestick chart for Nikkei 225 Index (NKY) as at Sep 17, 2020

Thursday's trading range has been ¥174.16 (0.74%), that's slightly below the last trading month's daily average range of ¥195.43. 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.

One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on August 27th, NKY lost -1.41% on the following trading day.

Prices broke below the key technical support level at 23376.13 (now R1), which is likely to act as resistance going forward.

While the index is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.

Buying could speed up should prices move above the close-by swing high at 23506.45 where further buy stops might get triggered.

Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed below last periods low" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Nikkei 225. Out of 265 times, NKY closed higher 59.25% 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 58.87% with an average market move of 0.69%.

With six out of the other six Major World Indices closing lower today, the ones that stand out on the negative side are HSI losing -1.56% and NDX closing -1.48% lower. None of the markets managed to end the day in the green. Read more

Market Conditions for NKY as at Sep 17, 2020

Loading Market Conditions for NKY (Nikkei 225 Index)...
Latest Report:

NKY finds buyers again around 23290.19

Sep 18, 2020

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