PIN breaks below key technical support level
PowerShares India ETF (PIN) Technical Analysis Report for May 19, 2020 | by Techniquant Editorial Team
PIN ended Tuesday at 15.03 losing $0.34 (-2.21%). Today's close at 15.03 marks the lowest recorded closing price since April 21st. The bears were in full control today, moving the market lower throughout the whole session. Closing below Monday's low at 15.11, the ETF confirmed its breakout through the previous session low after trading up to $0.12 below it intraday.
Daily Candlestick Chart (PIN as at May 19, 2020):
Tuesday's trading range has been $0.20 (1.32%), that's below the last trading month's daily average range of $0.29. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for PIN.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices broke below the key technical support level at 15.12 (now R1), which is likely to act as resistance going forward. The last time this happened on April 15th, PIN actually gained 0.35% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 15.45 where further buy stops could get triggered. Selling might accelerate should prices move below the nearby swing low at 14.89 where further sell stops could get activated.
Among the nine 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 54.91% with an average market move of 0.43%.