NKY dominated by bulls lifting the market higher throughout the day
Nikkei 225 Index (NKY) Technical Analysis Report for Mar 13, 2018 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, NKY finished Tuesday at 21968.10 gaining ¥144.07 (0.66%). Today's closing price of 21968.10 marks the highest close since February 28th. The bulls were in full control today, moving the market higher throughout the whole session. Closing within the previous day's range, prices failed to decisively move past the prior day's trading range. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (NKY as at Mar 13, 2018):
Tuesday's trading range was ¥267.32 (1.23%), that's slightly below last trading month's daily average range of ¥268.17. Things look different on a weekly scale, where volatility is slightly below the markets average with the monthly volatility being way below average.
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. Regardless of a weak opening the stock index managed to close above the prior day's open and close, forming a bullish Engulfing Candle.
Prices are trading close to the key resistance level at 22152.85. After having been unable to move lower than 21689.97 in the previous session, the index found buyers again around the same price level today at 21700.78.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Buying might accelerate should prices move above the nearby swing high at 21971.16 where further buy stops could get triggered.
With five out of the other six Major World Indices closing lower today, the ones that stand out on the negative side are DAX losing -1.59% and NDX closing -1.19% lower. On the flipside the best performer has been HSI closing 0.02% higher. Read more