NKY closes higher for the 3rd day in a row
Nikkei 225 Index (NKY) Technical Analysis Report for Apr 17, 2018
Moving higher for the 3rd day in a row, NKY ended Tuesday at 21847.59 gaining ¥12.06 (0.06%). Today's closing price of 21847.59 marks the highest close since March 13th. Closing within the prior day's range, prices failed to decisively move past the previous day's trading range in a lackluster session.
Tuesday's trading range was ¥117.47 (0.54%), that's far below last trading month's daily average range of ¥249.83. Things look different on a weekly scale, where volatility is way below the markets average with the monthly volatility being slightly below average. Prices continued to consolidate within a tight trading range between 21746.69 and 21917.35 which it has been in now for the last three days.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. In spite of a weak opening the index managed to close above the prior day's open and close, forming a bullish Engulfing Candle.
The stock index found buyers again today around 21772.42 for the third trading day in a row after having found demand at 21775.61 in the previous session and at 21746.69 two days ago.
Though the market is experiencing a short-term up trend, this could just be a correction, as both the medium and long term trends are still in negative territory.
Buying might accelerate should prices move above the nearby swing high at 21917.35 where further buy stops could get triggered. Selling might speed up should prices move below the close-by swing low at 21591.39 where further sell stops could get activated. Further buying might move prices higher should the market test March's nearby high at 21971.16.
While classical technical analysis indicates a neutral sentiment for the next trading day, our quantitative statistics show a different picture being bullish.
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