NASDAQ Composite (.IXIC) rise ahead of Thanksgiving Day
US markets edged higher into record territory on Wednesday however trading volumes were thin ahead of the Thanksgiving Day holiday on Thursday. The Dow Jones Industrial Average moved up 42.32 points or 0.15 percent to 28,164.00 while the S&P 500 rose 13.11 points or 0.42 percent to 3,153.63. The Nasdaq Composite Index gained 57.24 points or 0.66 percent to close the session at 8,705.18.
European markets also moved higher after Donald Trump indicated that the US and China were in the “final throes” of a trade deal. The pan-European Stoxx 600 index rose 0.4 percent whilst Germany’s DAX gained 0.5 percent. The UK’s FTSE 100 continued its gains and also rose 0.5 percent as sentiment remained strong among investors.
Panasonic winds down chip unit
Panasonic Corp announced it would sell its loss-making semiconductor unit to Taiwan’s Nuvoton Technology Corp for $250 million as the Japanese electronics giant struggles to lift its profit amid a lack of growth drivers. Panasonic has already divested most of its chip business as it lost to more nimble Korean and Taiwanese rivals, and has shut down or shifted its manufacturing facilities with Israeli-based Tower Semicondutor.
The sale is part of Panasonic’s plans to cut fixed costs by $920 million by consolidating production sites and overhauling loss-making businesses. Panasonic said the sale will not have any significant impact on its earnings. The company has turned its focus away from low-margin consumer electronics and has invested into business that sell to automakers, as well as to corporations such as factory-owners and firms that automate processes.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 8,322.94.
The projected upper bound is: 8,903.52.
The projected lower bound is: 8,527.94.
The projected closing price is: 8,715.73.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 white candles.
A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 10 rising windows in the last 50 candles–this makes the current rising window even more bullish.
Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 97.7407. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 5 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 75.57. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 5 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 193.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 5 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 0 period(s) ago.
Rex Takasugi – TD Profile
NASDAQ COMPOSITE closed up 57.241 at 8,705.175. Volume was 19% below average (neutral) and Bollinger Bands were 24% narrower than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 8,567.89 8,239.26 7,976.03
Volatility: 9 15 18
Volume: 564,880,000 536,130,400 554,011,136
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
NASDAQ COMPOSITE gapped up today (bullish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
NASDAQ COMPOSITE is currently 9.1% above its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume into .IXIC (mildly bullish). Our trend forecasting oscillators are currently bullish on .IXIC and have had this outlook for the last 29 periods. Our momentum oscillator is currently indicating that .IXIC is currently in an overbought condition.