PIN closes above its opening price after recovering from early selling pressure
PowerShares India ETF (PIN) Technical Analysis Report for May 27, 2020 | by Techniquant Editorial Team
PIN finished Wednesday at 15.60 gaining $0.18 (1.17%). Trading up to $0.10 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on May 14th, PIN actually lost -1.80% on the following trading day. 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 27, 2020):
Wednesday's trading range has been $0.19 (1.22%), that's below the last trading month's daily average range of $0.28. Weekly volatility is also lower, being 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 15.67 where it has been caught now for the whole last trading week.
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. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
The ETF managed to close back above the 20-day moving average at 15.46. After having been unable to move above 15.67 in the prior session, PIN ran into sellers again around the same price level today, missing to move higher than 15.66.
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 could accelerate should prices move above the nearby swing high at 15.67 where further buy stops might get activated. Selling could speed up should prices move below the close-by swing low at 15.30 where further sell stops might get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Spinning Top" stand out. Its common bullish interpretation has been confirmed for PIN. Out of 148 times, PIN closed higher 56.08% 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 53.38% with an average market move of 0.18%.