PIN closes above its opening price after recovering from early selling pressure
PowerShares India ETF (PIN) Technical Analysis Report for Aug 07, 2020 | by Techniquant Editorial Team
PIN finished the week 2.2% higher at 19.03 after losing $0.08 (-0.42%) today. Trading up to $0.07 lower after the open, the ETF managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (PIN as at Aug 07, 2020):
Friday's trading range has been $0.16 (0.84%), that's slightly 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. Prices continued to consolidate within a tight trading range between 18.87 and 19.11 where it has been caught now for the last three trading days.
Two candlestick patterns are matching today's price action, the Bullish Closing Marubozu and the White Candle which are both known as bullish patterns.
After trading as low as 18.87 during the day, the market found support at the 200-day moving average at 18.89. The last time this happened on May 1, 2018, PIN actually lost -1.29% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 19.11 where further buy stops might get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "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 764 times, PIN closed lower 58.12% 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 51.44% with an average market move of -0.30%.