FXI closes lower for the 2nd day in a row
iShares China Large-Cap ETF (FXI) Technical Analysis Report for Jul 10, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, FXI ended the week 7.45% higher at 44.55 after losing $0.67 (-1.48%) today. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (FXI as at Jul 10, 2020):
Friday's trading range has been $0.38 (0.85%), that's below the last trading month's daily average range of $0.54. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for FXI.
Prices are trading close to the key technical resistance level at 45.43 (R1).
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 41.48. The last time this happened on June 8th, FXI lost -0.48% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might speed up should prices move below the close-by swing low at 44.11 where further sell stops could get activated. 2019's high at 45.96 is within reach and we might see further upside momentum should the market manage to break out beyond.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for FXI ETF. Out of 307 times, FXI closed higher 51.79% 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 55.70% with an average market move of 0.56%.