ASHR breaks below Tuesday's low
Xtrackers Harvest CSI 300 China A-Shares (ASHR) Technical Analysis Report for Oct 14, 2020 | by Techniquant Editorial Team
ASHR finished Wednesday at 36.21 losing $0.35 (-0.96%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Tuesday's low at 36.35, Xtrackers Harvest confirmed its breakout through the prior session low after trading up to $0.17 below it intraday.
Daily Candlestick Chart (ASHR as at Oct 14, 2020):
Wednesday's trading range has been $0.24 (0.66%), that's slightly below the last trading month's daily average range of $0.28. 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 higher than usual for ASHR.
One bearish candlestick pattern matches today's price action, the Black Candle.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and could now be heading back down towards the mean of the Bollinger Bands at 35.04. The last time this happened on September 2nd, ASHR lost -1.73% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 36.61 where further buy stops could get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Down Close Near Low of Period" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Xtrackers Harvest. Out of 293 times, ASHR closed higher 56.31% 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 61.09% with an average market move of 0.42%.