PIN closes higher for the 4th day in a row
PowerShares India ETF (PIN) Technical Analysis Report for Jun 01, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, PIN finished Monday at 16.62 surging $0.42 (2.59%) on low volume. 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 May 29th, PIN gained 2.59% on the following trading day. Today's close at 16.62 marks the highest recorded closing price since March 10th. 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 Jun 01, 2020):
Monday's trading range has been $0.26 (1.58%), that's slightly below the last trading month's daily average range of $0.26. 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 higher than usual for PIN.
One bullish candlestick pattern matches today's price action, the White Candle.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day while might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 15.54.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the eight 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 644 times, PIN closed lower 59.16% 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 53.88% with an average market move of -0.45%.