KWEB still stuck within tight trading range
KraneShares Trust CSI China Internet (KWEB) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
KWEB ended the month 17.73% higher at 61.94 after edging lower $0.06 (-0.1%) today. Trading $0.48 higher after the open, the ETF was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (KWEB as at Jun 30, 2020):
Tuesday's trading range has been $0.90 (1.45%), that's below the last trading month's daily average range of $1.14. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly lower than usual for KWEB. Prices continued to consolidate within a tight trading range between 60.96 and 62.95 where it has been caught now for the whole last trading week.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on June 4th, KWEB actually gained 2.45% on the following trading day.
Prices are trading close to the key technical support level at 61.13 (S1).
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 60.96 where further sell stops could get activated.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for KraneShares Trust. Out of 86 times, KWEB closed higher 60.47% 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 59.30% with an average market move of 0.60%.