FXI finds buyers at key support level
iShares China Large-Cap ETF (FXI) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, FXI finished the month 1.66% higher at 39.70 after losing $0.35 (-0.87%) today. Closing below Monday's low at 39.80, the ETF confirmed its breakout through the previous session low after trading up to $0.31 below it intraday.
Daily Candlestick Chart (FXI as at Jun 30, 2020):
Tuesday's trading range has been $0.43 (1.08%), that's slightly below the last trading month's daily average range of $0.50. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for FXI.
After trading down to 39.49 earlier during the day, FXI ETF bounced off the key technical support level at 39.54 (S1). The failure to close below the support could increase that levels significance as support going forward. When prices bounced off a significant support level the last time on June 16th, FXI gained 0.40% on the following trading day.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
As prices are trading close to June's low at 39.10, downside momentum might speed up should FXI mark new lows for the month.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for FXI ETF. Out of 337 times, FXI closed higher 61.13% 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 55.79% with an average market move of 0.31%.