INDA breaks below key technical support level
Ishares MSCI India (INDA) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
INDA finished the month 5.57% higher at 29.02 after losing $0.19 (-0.65%) today. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (INDA as at Jun 30, 2020):
Tuesday's trading range has been $0.32 (1.1%), that's below the last trading month's daily average range of $0.44. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for INDA. Prices continued to consolidate within a tight trading range between 28.88 and 29.29 where it has been caught now for the last three trading days.
One bullish candlestick pattern matches today's price action, the Bullish Hikkake Pattern. The last time a Bullish Hikkake Pattern showed up on February 27th, INDA actually lost -3.04% on the following trading day.
Prices broke below the key technical support level at 29.04 (now R1), which is likely to act as resistance going forward. After having been unable to move above 29.26 in the prior session, the market ran into sellers again around the same price level today, failing to move higher than 29.20.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could accelerate should prices move above the nearby swing high at 29.33 where further buy stops might get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Hikkake Pattern" stand out. Its common bullish interpretation has been confirmed for Ishares MSCI. Out of 53 times, INDA closed higher 52.83% 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 58.49% with an average market move of 0.22%.