PIN ends the day indecisive
PowerShares India ETF (PIN) Technical Analysis Report for May 28, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, PIN ended Thursday at 15.80 gaining $0.20 (1.28%). Trading $0.08 higher after the open, the ETF was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on Tuesday, PIN actually gained 1.17% on the following trading day. 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 28, 2020):
Thursday's trading range has been $0.21 (1.32%), 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 are trading close to the key technical resistance level at 16.01 (R1).
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
As prices are trading close to May's high at 16.31, upside momentum might accelerate should the market mark new highs for the month.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for PIN. Out of 298 times, PIN closed higher 52.01% 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 seven trading days, showing a win rate of 50.67% with an average market move of 0.10%.