PIN breaks below Thursday's low
PowerShares India ETF (PIN) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, PIN ended the month 9.02% higher at 18.62 after losing $0.14 (-0.75%) today on high volume. Closing below Thursday's low at 18.68, the ETF confirmed its breakout through the prior session low after trading up to $0.14 below it intraday.
Daily Candlestick Chart (PIN as at Jul 31, 2020):
Friday's trading range has been $0.32 (1.7%), that's far above the last trading month's daily average range of $0.15. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for PIN.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. The last time this happened on July 23rd, PIN actually gained 1.02% on the following trading day. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
After trading down to 18.54 earlier during the day, the market bounced off the key technical support level at 18.54 (S1). The failure to close below the support might increase that levels significance as support going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could speed up should prices move below the nearby swing low at 18.54 where further sell stops might get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for PIN. Out of 237 times, PIN closed higher 63.71% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 53.16% with an average market move of 0.17%.