PIN closes below its opening price unable to hold early session gains


PowerShares India ETF (PIN) Technical Analysis Report for May 26, 2020 | by Techniquant Editorial Team

Highlights

PIN breaks back below 20-day moving average
PIN closes below its opening price unable to hold early session gains
PIN stuck within tight trading range
PIN closes within previous day's range

Overview

PIN ended Tuesday at 15.42 edging lower $0.05 (-0.32%). Trading $0.14 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. 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 26, 2020):

Daily technical analysis candlestick chart for PowerShares India ETF (PIN) as at May 26, 2020

Tuesday's trading range has been $0.23 (1.48%), 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 15.30 and 15.65 where it has been caught now for the last three trading days.

Regardless of a strong opening the ETF closed below the previous day's open and close, forming a bearish Engulfing Candle.

PIN closed back below the 20-day moving average at 15.45 for the first time since May 20th. When this moving average was crossed below the last time on May 15th, PIN actually gained 0.79% on the following trading day.

The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.

Selling could accelerate should prices move below the nearby swing low at 15.30 where further sell stops might get activated. As prices are trading close to May's low at 14.89, downside momentum could speed up should the market mark new lows for the month.

Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 20" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for PIN. Out of 178 times, PIN closed higher 58.43% 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 four trading days, showing a win rate of 53.93% with an average market move of 0.20%.


Market Conditions for PIN as at May 26, 2020

Loading Market Conditions for PIN (PowerShares India ETF)...
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