FXI closes above its opening price after recovering from early selling pressure
iShares China Large-Cap ETF (FXI) Technical Analysis Report for Aug 10, 2020 | by Techniquant Editorial Team
FXI finished Monday at 42.31 gaining $0.30 (0.71%) on low volume. Trading up to $0.22 lower after the open, the ETF managed to reverse during the session as bulls took control ending the day above its opening price. 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 Aug 10, 2020):
Monday's trading range has been $0.35 (0.83%), that's below the last trading month's daily average range of $0.40. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly lower than usual for FXI.
One bullish candlestick pattern matches today's price action, the Hammer. The last time a Hammer showed up on March 13th, FXI actually lost -10.29% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could speed up should prices move below the close-by swing low at 41.75 where further sell stops might get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hammer" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for FXI ETF. Out of 36 times, FXI closed lower 52.78% 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 61.11% with an average market move of -0.89%.