NLY stuck within tight trading range
Annaly Capital Management Inc (NLY) Technical Analysis Report for Aug 07, 2020 | by Techniquant Editorial Team
NLY ended the week -0.4% lower at 7.38 after gaining $0.07 (0.96%) today, outperforming the S&P 500 (0.06%). Trading up to $0.05 lower after the open, Annaly Capital managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Monday, NLY actually lost -2.27% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (NLY as at Aug 07, 2020):
Friday's trading range has been $0.12 (1.64%), that's far below the last trading month's daily average range of $0.17. 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 NLY. Prices continued to consolidate within a tight trading range between 7.27 and 7.47 where it has been caught now for the last three trading days.
After moving lower in the previous session, the market managed to close higher but below the prior day's open, forming a bullish Harami Candle.
After trading down to 7.27 earlier during the day, the stock bounced off the key technical support level at 7.32 (S1). The failure to close below the support could increase that levels importance as support going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 7.47 where further buy stops could get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Harami Candle" stand out. Its common bullish interpretation has been confirmed for Annaly Capital. Out of 51 times, NLY closed higher 56.86% 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 three trading days, showing a win rate of 56.86% with an average market move of -0.14%.