PIN ends the day on a bearish note closing near the low of the day
PowerShares India ETF (PIN) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, PIN ended the week unchanged at 19.75 after losing $0.16 (-0.8%) today ahead of tomorrow's Presidents' Day market holiday. The bears were in full control today, moving the market lower throughout the whole session. Ending with a weak close near the low of the day sets a bearish note for the next session.
Daily Candlestick Chart (PIN as at Feb 14, 2020):
Friday's trading range has been $0.13 (0.65%), that's slightly above the last trading month's daily average range of $0.11. 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 slightly lower than usual for PIN.
Two candlestick patterns are matching today's price action, the Bearish Belt-hold and the Black Candle which are both known as bearish patterns.
The market closed back below the 20-day moving average at 19.86. When this moving average was crossed below the last time on January 30th, PIN lost -1.12% on the following trading day.
While the ETF is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Belt-hold" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for PIN. Out of 39 times, PIN closed higher 69.23% 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 seven trading days, showing a win rate of 51.28% with an average market move of 0.02%.