NDAQ finds buyers again around 129.01
Nasdaq Inc. (NDAQ) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
NDAQ finished the month 9.91% higher at 131.31 after gaining $1.41 (1.09%) today, slightly outperforming the S&P 500 (0.77%). Trading up to $1.69 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (NDAQ as at Jul 31, 2020):
Friday's trading range has been $2.34 (1.79%), that's slightly below the last trading month's daily average range of $2.48. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for NDAQ. Prices continued to consolidate within a tight trading range between 127.40 and 131.54 where it has been caught now for the whole last trading week.
One bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on July 17th, NDAQ actually gained 2.23% on the following trading day.
Prices are trading close to the key technical resistance level at 131.54 (R1). After having been unable to move lower than 128.67 in the previous session, the market found buyers again around the same price level today at 129.01.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 131.54 where further buy stops could get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior low" stand out. Its common bullish interpretation has been confirmed for Nasdaq. Out of 555 times, NDAQ closed higher 53.51% 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 59.10% with an average market move of 0.98%.