ASHR closes higher for the 2nd day in a row
Xtrackers Harvest CSI 300 China A-Shares (ASHR) Technical Analysis Report for Sep 18, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, ASHR ended the week 3.55% higher at 35.33 after gaining $0.40 (1.15%) today on low volume.
Daily Candlestick Chart (ASHR as at Sep 18, 2020):
Friday's trading range has been $0.19 (0.54%), that's below the last trading month's daily average range of $0.27. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ASHR.
Two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns. The last time a Bearish Short Candle showed up on July 28th, ASHR actually gained 3.33% on the following trading day.
After trading down to 35.28 earlier during the day, the market bounced off the key technical support level at 35.30 (S1). The failure to close below the support might increase that levels importance as support going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 35.95, upside momentum could speed up should Xtrackers Harvest be able to break out to new highs for the year.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Short Candle" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Xtrackers Harvest. Out of 78 times, ASHR closed higher 57.69% 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 62.82% with an average market move of 0.73%.