NYA finds support at 20-day moving average
NYSE Composite Index (NYA) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, NYA finished the month 4.8% higher at 12465.05 after losing $68.23 (-0.54%) today. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (NYA as at Jul 31, 2020):
Friday's trading range has been $188.60 (1.51%), that's above the last trading month's daily average range of $139.27. 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 slightly lower than usual for NYA.
After trading as low as 12320.73 during the day, the stock index found support at the 20-day moving average at 12328.50. The last time this happened on July 14th, NYA gained 3.13% on the following trading day. The index closed back below the 200-day moving average at 12469.89 for the first time since July 24th.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 200" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for NYSE Composite. Out of 44 times, NYA closed higher 61.36% 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 10 trading days, showing a win rate of 77.27% with an average market move of 1.18%.