NYA closes lower for the 2nd day in a row
NYSE Composite Index (NYA) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, NYA ended the week 1.19% higher at 14097.34 after edging lower $1.70 (-0.01%) today ahead of tomorrow's Presidents' Day market holiday. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (NYA as at Feb 14, 2020):
Friday's trading range has been $63.59 (0.45%), that's below the last trading month's daily average range of $95.31. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for NYA.
One bearish candlestick pattern matches today's price action, the Hanging Man. The last time a Hanging Man showed up on November 14, 2019, NYA actually gained 0.75% on the following trading day.
Prices are trading close to the key technical resistance level at 14102.39 (R1). After having been unable to move lower than 14049.13 in the prior session, NYSE Composite found buyers again around the same price level today at 14046.60.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 14148.24 where further buy stops could get activated. With prices trading close to this year's high at 14183.26, upside momentum might accelerate should the market be able to break out to new highs for the year.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hanging Man" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for NYSE Composite. Out of 110 times, NYA closed higher 59.09% 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 three trading days, showing a win rate of 58.18% with an average market move of 0.03%.