NTES closes higher for the 2nd day in a row
NetEase Inc. (NTES) Technical Analysis Report for Aug 03, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, NTES ended Monday at 468.99 gaining $10.57 (2.31%), outperforming the Nasdaq 100 (1.37%).
Daily Candlestick Chart (NTES as at Aug 03, 2020):
Monday's trading range has been $7.94 (1.71%), that's below the last trading month's daily average range of $12.62. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for NTES.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
NetEase managed to close back above the 20-day moving average at 462.20 for the first time since July 23rd. When this moving average was crossed above the last time on May 7th, NTES gained 3.58% on the following trading day.
While the market is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. Its common bullish interpretation has been confirmed for NetEase. Out of 136 times, NTES closed higher 51.47% 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 66.18% with an average market move of 1.63%.