NTES closes within prior day's range
NetEase Inc. (NTES) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, NTES ended the week 4.38% higher at 354.64 after edging higher $0.31 (0.09%) today on low volume, slightly underperforming the Nasdaq 100 (0.29%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 354.64 marks the highest recorded closing price since December 27, 2017. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (NTES as at Feb 14, 2020):
Friday's trading range has been $7.15 (1.99%), that's slightly below the last trading month's daily average range of $8.47. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for NTES.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on Wednesday, NTES actually gained 1.73% on the following trading day.
Prices are trading close to the key technical support level at 351.41 (S1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Black Candle" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for NetEase. Out of 513 times, NTES closed higher 55.56% 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 55.95% with an average market move of 1.49%.