PIN closes above its opening price after recovering from early selling pressure
PowerShares India ETF (PIN) Technical Analysis Report for Oct 15, 2020 | by Techniquant Editorial Team
PIN finished Thursday at 19.98 tanking $0.31 (-1.53%). This is the biggest single-day loss in over three weeks. The last time we've seen such an unusually strong single-day loss on August 31st, PIN actually gained 1.98% on the following trading day. Trading up to $0.17 lower after the open, the ETF managed to reverse during the session as bulls took control ending the day above its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (PIN as at Oct 15, 2020):
Thursday's trading range has been $0.29 (1.46%), that's far above the last trading month's daily average range of $0.17. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for PIN.
After trading as low as 19.73 during the day, the market found support at the 20-day moving average at 19.77. Prices are trading close to the key technical resistance level at 20.04 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
As prices are trading close to October's low at 19.58, downside momentum might speed up should PIN mark new lows for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Strong Down Move" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for PIN. Out of 214 times, PIN closed higher 59.81% 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 56.54% with an average market move of 0.11%.