MSCI dominated by bulls lifting the market higher throughout the day
MSCI Inc (MSCI) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 7th day in a row, MSCI finished the week 8.3% higher at 322.56 after surging $9.16 (2.92%) today, notably outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. This is the biggest single-day gain in over two weeks. The last time we've seen such an unusually strong single-day gain on February 4th, MSCI actually lost -1.98% on the following trading day. Today's close at 322.56 marks the highest recorded closing price ever. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 314.21, the share confirmed its breakout through the prior session high after trading up to $8.66 above it intraday.
Daily Candlestick Chart (MSCI as at Feb 14, 2020):
Friday's trading range has been $9.28 (2.96%), that's above the last trading month's daily average range of $6.78. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for MSCI.
One bullish candlestick pattern matches today's price action, the White Candle.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day while could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 291.87.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed above last periods high" stand out. Its common bullish interpretation has been confirmed for MSCI. Out of 476 times, MSCI closed higher 53.57% 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 64.71% with an average market move of 1.33%.