PIN dominated by bulls lifting the market higher throughout the day
PowerShares India ETF (PIN) Technical Analysis Report for Jun 25, 2020 | by Techniquant Editorial Team
PIN ended Thursday at 17.27 gaining $0.18 (1.05%). The bulls were in full control today, moving the market higher throughout the whole session. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (PIN as at Jun 25, 2020):
Thursday's trading range has been $0.15 (0.87%), that's below the last trading month's daily average range of $0.24. 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.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a Bullish Short Candle showed up on June 18th, PIN gained 1.20% on the following trading day.
Prices are trading close to the key technical support level at 17.03 (S1). After having been unable to move lower than 17.09 in the previous session, the ETF found buyers again around the same price level today at 17.12.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might speed up should prices move above the close-by swing high at 17.62 where further buy stops could get triggered. Selling might accelerate should prices move below the nearby swing low at 17.09 where further sell stops could get activated.
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. While it is usually interpreted as bullish, it has actually shown to be bearish for PIN. Out of 644 times, PIN closed lower 59.01% 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 53.57% with an average market move of -0.44%.