PIN stuck within tight trading range
PowerShares India ETF (PIN) Technical Analysis Report for Oct 12, 2020 | by Techniquant Editorial Team
PIN finished Monday at 20.34 losing $0.11 (-0.54%) on high volume. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (PIN as at Oct 12, 2020):
Monday's trading range has been $0.16 (0.79%), that's slightly below the last trading month's daily average range of $0.17. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for PIN. Prices continued to consolidate within a tight trading range between 20.22 and 20.50 where it has been caught now for the last three trading days.
Two candlestick patterns are matching today's price action, the Northern Doji which is known as bearish pattern and one neutral pattern, the Doji. The last time a Doji showed up on September 25th, PIN gained 1.83% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 20.50 where further buy stops could get triggered.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Northern Doji" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for PIN. Out of 45 times, PIN closed higher 53.33% 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 three trading days, showing a win rate of 53.33% with an average market move of 0.30%.