NLY closes within prior day's range
Annaly Capital Management Inc (NLY) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, NLY ended Thursday at 6.34 gaining $0.39 (6.55%), slightly outperforming the S&P 500 (6.24%). Trading $0.47 higher after the open, Annaly Capital was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on Tuesday, NLY actually gained 17.82% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (NLY as at Mar 26, 2020):
Thursday's trading range has been $0.77 (12.03%), that's slightly below the last trading month's daily average range of $0.80. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for NLY.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
After trading down to 6.10 earlier during the day, the stock bounced off the key technical support level at 6.19 (S1). The failure to close below the support might increase that levels importance as support going forward.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Annaly Capital. Out of 451 times, NLY closed higher 55.65% of the time on the next trading day after the market condition occurred.