ASHR breaks below 20-day moving average for the first time since May 5th
Xtrackers Harvest CSI 300 China A-Shares (ASHR) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, ASHR ended the week -1.39% lower at 26.88 after losing $0.43 (-1.57%) today ahead of tomorrow's Memorial Day market holiday. Trading $0.06 higher after the open, Xtrackers Harvest was unable to hold its gains as the bears took control ending the day below its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (ASHR as at May 22, 2020):
Friday's trading range has been $0.16 (0.59%), that's below the last trading month's daily average range of $0.26. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ASHR.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on May 15th, ASHR actually gained 2.68% on the following trading day.
The market closed below the 20-day moving average at 27.30 for the first time since May 5th.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) below 20" stand out. Its common bullish interpretation has been confirmed for Xtrackers Harvest. Out of 178 times, ASHR closed higher 57.87% 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 57.87% with an average market move of 0.38%.