PIN closes above its opening price after recovering from early selling pressure
PowerShares India ETF (PIN) Technical Analysis Report for Apr 18, 2019 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, PIN finished Thursday at 25.66 gaining $0.06 (0.23%) on high volume ahead of tomorrow's Good Friday market holiday. Trading up to $0.10 lower after the open, the ETF managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (PIN as at Apr 18, 2019):
Thursday's trading range has been $0.17 (0.66%), that's above the last trading month's daily average range of $0.13. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly lower than usual for PIN. Prices continued to consolidate within a tight trading range between 25.50 and 25.70 where it has been caught now for the last three trading days.
One bearish candlestick pattern matches today's price action, the Last Engulfing Top Pattern. The last time a Last Engulfing Top Pattern showed up on April 3rd, PIN lost -1.21% on the following trading day.
Prices are trading close to the key technical resistance level at 25.71 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 25.70 where further buy stops could get activated. With prices trading close to this year's high at 25.84, upside momentum might accelerate should the market 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 six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Up Close near high of period" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for PIN. Out of 648 times, PIN closed lower 57.87% 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 51.23% with an average market move of -0.21%.