PIN ends the day indecisive
PowerShares India ETF (PIN) Technical Analysis Report for May 20, 2020 | by Techniquant Editorial Team
PIN finished Wednesday at 15.40 gaining $0.37 (2.46%). 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 May 20, 2020):
Wednesday's trading range has been $0.17 (1.11%), 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. Prices continued to consolidate within a tight trading range between 14.89 and 15.59 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
After spiking up to 15.50 during the day, the ETF found resistance at the 20-day moving average at 15.43. The last time this happened on Monday, PIN lost -2.21% on the following trading day.
Though the market is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Selling could speed up should prices move below the close-by swing low at 14.99 where further sell stops might get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 20" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for PIN. Out of 22 times, PIN closed higher 63.64% 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 50.00% with an average market move of 0.77%.