PIN pushes through Tuesday's high
PowerShares India ETF (PIN) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 6th day in a row, PIN ended Wednesday at 19.98 gaining $0.13 (0.65%). Today's close at 19.98 marks the highest recorded closing price since February 12th. Closing above Tuesday's high at 19.94, the ETF confirmed its breakout through the prior session high after trading up to $0.10 above it intraday.
Daily Candlestick Chart (PIN as at Sep 16, 2020):
Wednesday's trading range has been $0.12 (0.6%), that's slightly below the last trading month's daily average range of $0.14. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for PIN.
Prices are trading close to the key technical support level at 19.83 (S1).
Crossing above the upper Bollinger Band for the first time since August 28th, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 19.50 or signal the beginning of a strong momentum breakout leading to even higher prices. The last time prices broke out above the upper Bollinger Band on August 28th, PIN actually lost -3.18% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 20.31, upside momentum could speed up should the market be able to break out to new highs for the year.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "6 Consecutive Higher Closes" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for PIN. Out of 16 times, PIN closed lower 56.25% of the time on the next trading day after the market condition occurred.