FXI ends the day on a bearish note closing near the low of the day
iShares China Large-Cap ETF (FXI) Technical Analysis Report for Jun 14, 2019 | by Techniquant Editorial Team
FXI finished the week -0.07% lower at 40.49 after losing $0.39 (-0.95%) today on low volume. The bears were in full control today, moving the market lower throughout the whole session. Ending with a weak close near the low of the day sets a bearish note for the next session.
Daily Candlestick Chart (FXI as at Jun 14, 2019):
Friday's trading range has been $0.21 (0.52%), that's far below the last trading month's daily average range of $0.33. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for FXI.
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 February 28th, FXI actually gained 1.24% on the following trading day.
FXI ETF closed back below the 20-day moving average at 40.52 for the first time since June 7th.
While the market is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might accelerate should prices move above the nearby swing high at 41.01 where further buy stops could get triggered. Further selling might move prices lower should the market test May's close-by low at 39.90.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Down Move" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for FXI ETF. Out of 233 times, FXI closed higher 57.08% 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 57.08% with an average market move of 0.72%.