PIN ends the day indecisive
PowerShares India ETF (PIN) Technical Analysis Report for Apr 16, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, PIN finished Tuesday at 25.50 gaining $0.06 (0.24%). Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (PIN as at Apr 16, 2019):
Tuesday's trading range has been $0.09 (0.35%), that's below the last trading month's daily average range of $0.14. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for PIN. Prices continued to consolidate within a tight trading range between 25.34 and 25.59 where it has been caught now for the whole last trading week.
Four candlestick patterns are matching today's price action, the Gravestone Doji, the Northern Doji and the Shooting Star which are known as bearish patterns and one neutral pattern, the Doji. The last time a Shooting Star showed up on April 4th, PIN actually gained 0.79% on the following trading day.
Although the market is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Selling might speed up should prices move below the nearby swing low at 25.34 where further sell stops could get triggered. With prices trading close to this year's high at 25.84, upside momentum might accelerate should the ETF be able to break out to new highs for the year. As prices are trading close to April's high at 25.71, upside momentum could speed up should PIN mark new highs for the month.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Gravestone Doji" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for PIN. Out of 7 times, PIN closed higher 71.43% 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 71.43% with an average market move of 1.06%.