PIN closes within previous day's range
PowerShares India ETF (PIN) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, PIN finished the week 1.44% higher at 15.47 after edging higher $0.03 (0.19%) today ahead of tomorrow's Memorial Day market holiday. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (PIN as at May 22, 2020):
Friday's trading range has been $0.21 (1.36%), that's slightly below the last trading month's daily average range of $0.28. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for PIN. Prices continued to consolidate within a tight trading range between 14.99 and 15.52 where it has been caught now for the whole last trading week.
One bearish candlestick pattern matches today's price action, the Hanging Man.
The ETF ran into sellers again today around 15.51 for the third trading day in a row after having found sellers at 15.52 in the previous session and at 15.50 two days ago. The last time this happened on April 3rd, PIN actually gained 6.14% on the following trading day.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the nearby swing high at 15.52 where further buy stops could get triggered.
Among the seven 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 645 times, PIN closed lower 59.07% 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 53.80% with an average market move of -0.43%.