NTES finds buyers again around 471.04
NetEase Inc. (NTES) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
NTES finished Wednesday at 474.29 losing $3.19 (-0.67%), but still outperforming the Nasdaq 100 (-1.67%). 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 Sep 16, 2020):
Wednesday's trading range has been $9.52 (1.99%), that's below the last trading month's daily average range of $12.27. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for NTES.
After trading down to 471.04 earlier during the day, NetEase bounced off the key technical support level at 473.86 (S1). The failure to close below the support could increase that levels significance as support going forward. After having been unable to move lower than 469.99 in the previous session, the market found buyers again around the same price level today at 471.04. The last time this happened on August 11th, NTES gained 4.40% on the following trading day.
While the share is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for NetEase. Out of 439 times, NTES closed higher 59.68% 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 60.14% with an average market move of 1.87%.