NDAQ dominated by bulls lifting the market higher throughout the day
Nasdaq Inc. (NDAQ) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, NDAQ ended the week 1.64% higher at 116.20 after gaining $1.80 (1.57%) today on low volume, notably outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 114.90, the market confirmed its breakout through the previous session high after trading up to $1.35 above it intraday.
Daily Candlestick Chart (NDAQ as at Feb 14, 2020):
Friday's trading range has been $1.61 (1.4%), that's slightly below the last trading month's daily average range of $1.92. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for NDAQ.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern. The last time a White Candle showed up on Monday, NDAQ actually lost -0.80% on the following trading day.
Prices are trading close to the key technical resistance level at 116.68 (R1).
While the stock is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might accelerate should prices move above the nearby swing high at 116.68 where further buy stops could get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Nasdaq. Out of 321 times, NDAQ closed higher 54.83% 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 61.37% with an average market move of 0.97%.