PIN still stuck within tight trading range
PowerShares India ETF (PIN) Technical Analysis Report for Jun 18, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, PIN finished Thursday at 16.69 gaining $0.11 (0.66%) on low volume. The bulls were in full control today, moving the market higher throughout the whole session.
Daily Candlestick Chart (PIN as at Jun 18, 2020):
Thursday's trading range has been $0.12 (0.72%), that's far below the last trading month's daily average range of $0.24. 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 16.36 and 16.80 where it has been caught now for the whole last trading week.
Three candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns and one bearish pattern, the Bearish Hikkake Pattern. The last time a White Candle showed up on Monday, PIN actually lost -1.79% on the following trading day.
Prices are trading close to the key technical resistance level at 16.77 (R1). After having been unable to move above 16.69 in the prior session, the ETF ran into sellers again around the same price level today, failing to move higher than 16.72.
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 might speed up should prices move above the close-by swing high at 16.80 where further buy stops could get activated. As prices are trading close to June's high at 17.16, upside momentum might accelerate should PIN mark new highs for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Hikkake Pattern" stand out. Its common bearish interpretation has been confirmed for PIN. Out of 68 times, PIN closed lower 55.88% 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 61.76% with an average market move of -0.95%.