PIN finds buyers around 17.14 for the third day in a row
PowerShares India ETF (PIN) Technical Analysis Report for Jun 26, 2020 | by Techniquant Editorial Team
PIN ended the week 1.72% higher at 17.18 after losing $0.09 (-0.52%) today. The bears were in full control today, moving the market lower throughout the whole session. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (PIN as at Jun 26, 2020):
Friday's trading range has been $0.18 (1.04%), that's 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 17.09 and 17.34 where it has been caught now for the last three trading days.
Three candlestick patterns are matching today's price action, the Bearish Hikkake Pattern, the Black Candle and the Dark Cloud Cover which are known as bearish patterns. The last time a Dark Cloud Cover showed up on April 30th, PIN lost -3.35% on the following trading day.
The ETF found buyers again today around 17.14 for the third trading day in a row after having found demand at 17.12 in the previous session and at 17.09 two days ago.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Selling might accelerate should prices move below the nearby swing low at 17.09 where further sell stops could get activated.
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 69 times, PIN closed lower 55.07% 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 60.87% with an average market move of -0.95%.