NTES closes higher for the 3rd day in a row
NetEase Inc. (NTES) Technical Analysis Report for Aug 04, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, NTES finished Tuesday at 479.78 gaining $10.79 (2.3%), strongly outperforming the Nasdaq 100 (0.38%). Today's close at 479.78 marks the highest recorded closing price since July 10th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 471.87, NetEase confirmed its breakout through the prior session high after trading up to $7.91 above it intraday.
Daily Candlestick Chart (NTES as at Aug 04, 2020):
Tuesday's trading range has been $12.61 (2.7%), that's slightly below the last trading month's daily average range of $12.65. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for NTES.
One bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical resistance level at 480.57 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 503.27, upside momentum could speed up should the stock be able to break out to new highs for the year.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for NetEase. Out of 151 times, NTES closed higher 58.94% 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 57.62% with an average market move of 1.21%.