PIN pops to highest close since March 11th
PowerShares India ETF (PIN) Technical Analysis Report for May 29, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, PIN finished the month 2.53% higher at 16.20 after surging $0.40 (2.53%) today. This is the biggest single-day gain in over two weeks. The last time we've seen such an unusually strong single-day gain on March 13th, PIN actually lost -9.49% on the following trading day. Today's close at 16.20 marks the highest recorded closing price since March 11th. The bulls were in full control today, moving the market higher throughout the whole session. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (PIN as at May 29, 2020):
Friday's trading range has been $0.20 (1.25%), that's slightly below the last trading month's daily average range of $0.27. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for PIN.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 16.01 (now S1), which is likely to act as support going forward.
Crossing above the upper Bollinger Band for the first time since December 20, 2019, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 15.47 or signal the beginning of a strong momentum breakout leading to even higher prices.
While 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 could accelerate should the ETF mark new highs for the month.
Among the 10 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. Although it is usually interpreted as bullish, it has actually shown to be bearish for PIN. Out of 645 times, PIN closed lower 59.22% 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 -0.44%.