NTES finds buyers again around 426.77
NetEase Inc. (NTES) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, NTES finished the month 12.14% higher at 429.38 after losing $3.26 (-0.75%) today, strongly underperforming the Nasdaq 100 (1.96%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (NTES as at Jun 30, 2020):
Tuesday's trading range has been $11.00 (2.53%), that's below the last trading month's daily average range of $13.64. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for NTES.
Prices are trading close to the key technical support level at 425.00 (S1). After having been unable to move lower than 426.37 in the previous session, the stock found buyers again around the same price level today at 426.77. The last time this happened on June 24th, NTES actually lost -0.32% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 441.80 where further buy stops might get triggered. Selling could speed up should prices move below the close-by swing low at 426.37 where further sell stops might get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for NetEase. Out of 294 times, NTES closed higher 56.46% 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 57.48% with an average market move of 1.64%.