FXI pops to highest close since March 10th
iShares China Large-Cap ETF (FXI) Technical Analysis Report for Jun 01, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, FXI finished Monday at 39.74 gaining $0.69 (1.77%). Today's close at 39.74 marks the highest recorded closing price since March 10th. The bulls were in full control today, moving the market higher throughout the whole session. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (FXI as at Jun 01, 2020):
Monday's trading range has been $0.56 (1.42%), that's slightly above the last trading month's daily average range of $0.48. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for FXI.
One bullish candlestick pattern matches today's price action, the White Candle.
The ETF managed to close above the 100-day moving average at 39.53 for the first time since February 20th. When this moving average was crossed above the last time on February 11th, FXI gained 1.35% on the following trading day. Prices are trading close to the key technical resistance level at 39.84 (R1).
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Further buying could move prices higher should the market test May's nearby high at 39.84.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Gap Up" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for FXI ETF. Out of 497 times, FXI closed lower 54.33% 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 10 trading days, showing a win rate of 50.50% with an average market move of -0.14%.