NSEI climbs to highest close since February 20th
NIFTY 50 Index (NSEI) Technical Analysis Report for Oct 12, 2020 | by Techniquant Editorial Team
Moving higher for the 8th day in a row, NSEI finished Monday at 11930.95 edging higher INR16.75 (0.14%). Today's close at 11930.95 marks the highest recorded closing price since February 20th. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (NSEI as at Oct 12, 2020):
Monday's trading range has been INR154.85 (1.29%), that's slightly above the last trading month's daily average range of INR152.70. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for NSEI.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on September 4th, NSEI actually gained 0.19% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "8 Consecutive Higher Closes" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for NIFTY 50. Out of 9 times, NSEI closed lower 66.67% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 55.56% with an average market move of -0.48%.