FXI closes lower for the 2nd day in a row
iShares China Large-Cap ETF (FXI) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, FXI ended the week 2.45% higher at 42.27 after edging lower $0.04 (-0.09%) today on low volume ahead of tomorrow's Presidents' Day market holiday. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (FXI as at Feb 14, 2020):
Friday's trading range has been $0.35 (0.82%), that's below the last trading month's daily average range of $0.47. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for FXI.
Even with a strong opening the market closed below the prior day's open and close, forming a bearish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 41.98 (S1). After having been unable to move above 42.50 in the previous session, FXI ETF ran into sellers again around the same price level today, missing to move higher than 42.49. The last time this happened on Monday, FXI actually gained 1.93% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 42.95 where further buy stops might get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Black Candle" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for FXI ETF. Out of 486 times, FXI closed higher 54.94% 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 53.70% with an average market move of 0.52%.