ASHR finds buyers again around 25.99
Xtrackers Harvest CSI 300 China A-Shares (ASHR) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, ASHR finished Thursday at 26.81 gaining $0.61 (2.33%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 26.45, Xtrackers Harvest confirmed its breakout through the previous session high after trading up to $0.36 above it intraday.
Daily Candlestick Chart (ASHR as at Mar 26, 2020):
Thursday's trading range has been $0.82 (3.16%), that's slightly above the last trading month's daily average range of $0.80. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for ASHR.
Three candlestick patterns are matching today's price action, the Bullish Closing Marubozu, the Bullish Marubozu and the White Candle which are known as bullish patterns.
Buyers managed to take out the key technical resistance level at 26.72 (now S1), which is likely to act as support going forward. The last time this happened on March 17th, ASHR actually lost -5.33% on the following trading day. After having been unable to move lower than 25.85 in the prior session, the market found buyers again around the same price level today at 25.99.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Marubozu" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Xtrackers Harvest. Out of 7 times, ASHR closed lower 57.14% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 71.43% with an average market move of -1.66%.