PIN breaks back below 20-day moving average
PowerShares India ETF (PIN) Technical Analysis Report for May 15, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, PIN finished the week -2.24% lower at 15.25 after losing $0.28 (-1.8%) today. Trading up to $0.05 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 previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (PIN as at May 15, 2020):
Friday's trading range has been $0.14 (0.92%), that's below the last trading month's daily average range of $0.28. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for PIN.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
Prices are trading close to the key technical support level at 15.12 (S1). The market closed back below the 20-day moving average at 15.37 for the first time since May 6th. When this moving average was crossed below the last time on May 6th, PIN actually gained 1.53% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might accelerate should prices move below the nearby swing low at 14.89 where further sell stops could get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) below 20" stand out. Its common bullish interpretation has been confirmed for PIN. Out of 275 times, PIN closed higher 59.64% 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 55.27% with an average market move of 0.46%.