FXI closes below its opening price unable to hold early session gains
iShares China Large-Cap ETF (FXI) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
FXI finished Wednesday at 43.09 losing $0.13 (-0.3%). Trading $0.12 higher after the open, FXI ETF was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Tuesday's low at 43.11, the ETF confirmed its breakout through the prior session low after trading up to $0.02 below it intraday.
Daily Candlestick Chart (FXI as at Sep 16, 2020):
Wednesday's trading range has been $0.27 (0.62%), that's far below the last trading month's daily average range of $0.46. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for FXI.
Three candlestick patterns are matching today's price action, the Tweezer Top which is known as bullish pattern and two bearish patterns, the Bearish Short Candle and the Black Candle. The last time a Bearish Short Candle showed up on July 15th, FXI lost -2.28% on the following trading day.
Prices are trading close to the key technical support level at 43.00 (S1). After having been unable to move lower than 43.11 in the previous session, the market found buyers again around the same price level today at 43.09.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Short Candle" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for FXI ETF. Out of 59 times, FXI closed higher 55.93% 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 66.10% with an average market move of 2.07%.