ASHR stuck within tight trading range
Xtrackers Harvest CSI 300 China A-Shares (ASHR) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
ASHR ended the month 13.63% higher at 33.76 after gaining $0.31 (0.93%) today. 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 Jul 31, 2020):
Friday's trading range has been $0.30 (0.89%), that's slightly below the last trading month's daily average range of $0.36. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for ASHR. Prices continued to consolidate within a tight trading range between 33.20 and 33.86 where it has been caught now for the last three trading days.
One bearish candlestick pattern matches today's price action, the Hanging Man.
Unable to break through the key technical resistance level at 33.85 (R1), the market closed below it after spiking up to 33.86 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. When prices bounced off a significant resistance level the last time on July 24th, ASHR actually gained 0.18% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could accelerate should prices move below the close-by swing low at 33.20 where further sell stops might get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R1" stand out. Its common bearish interpretation has been confirmed for Xtrackers Harvest. Out of 146 times, ASHR closed lower 63.01% 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 six trading days, showing a win rate of 52.05% with an average market move of -0.53%.