NTES closes higher for the 4th day in a row
NetEase Inc. (NTES) Technical Analysis Report for Aug 05, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, NTES finished Wednesday at 480.83 gaining $1.05 (0.22%), slightly underperforming the Nasdaq 100 (0.26%). Today's close at 480.83 marks the highest recorded closing price since July 10th. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (NTES as at Aug 05, 2020):
Wednesday's trading range has been $9.55 (1.99%), that's below the last trading month's daily average range of $12.76. Weekly volatility is also lower, being slightly 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 Bullish Spinning Top. The last time a Bullish Spinning Top showed up on June 26th, NTES actually lost -1.24% on the following trading day.
Prices are trading close to the key technical support level at 473.86 (S1).
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 accelerate should NetEase be able to break out to new highs for the year.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for NetEase. Out of 89 times, NTES closed higher 55.06% 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 67.42% with an average market move of 1.62%.