NKY finds buyers again around 23290.19

Nikkei 225 Index (NKY) Technical Analysis Report for Sep 18, 2020 | by Techniquant Editorial Team


NKY finds buyers again around 23290.19
NKY closes within previous day's range after lackluster session


NKY ended the week -0.2% lower at 23360.30 after edging higher ¥40.93 (0.18%) today. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.

Daily Candlestick Chart (NKY as at Sep 18, 2020):

Daily technical analysis candlestick chart for Nikkei 225 Index (NKY) as at Sep 18, 2020

Friday's trading range has been ¥108.27 (0.46%), that's below the last trading month's daily average range of ¥190.08. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for NKY.

During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. After moving lower in the prior session, the stock index managed to close higher but below the previous day's open, forming a bullish Harami Candle. The last time this candlestick pattern showed up on March 23rd, NKY gained 7.13% on the following trading day.

After having been unable to move lower than 23272.23 in the prior session, Nikkei 225 found buyers again around the same price level today at 23290.19.

The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.

Buying could speed up should prices move above the close-by swing high at 23506.45 where further buy stops might get triggered. Selling could accelerate should prices move below the nearby swing low at 23272.23 where further sell stops might get activated.

Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Harami Candle" stand out. Its common bullish interpretation has been confirmed for Nikkei 225. Out of 27 times, NKY closed higher 74.07% 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 four trading days, showing a win rate of 70.37% with an average market move of 0.58%.

With five out of the other six Major World Indices closing lower today, the ones that stand out on the negative side are NDX losing -1.3% and SPX closing -1.12% lower. On the flipside the best performer has been HSI closing 0.47% higher. Read more

Market Conditions for NKY as at Sep 18, 2020

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