PIN closes below its opening price unable to hold early session gains
PowerShares India ETF (PIN) Technical Analysis Report for Oct 19, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, PIN ended Monday at 20.10 edging higher $0.06 (0.3%). Trading $0.10 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on October 13th, PIN actually gained 0.45% on the following trading day. 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 19, 2020):
Monday's trading range has been $0.18 (0.89%), that's slightly above the last trading month's daily average range of $0.16. 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 higher than usual for PIN.
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 20.50, upside momentum might accelerate should the ETF be able to break out to new highs for the year.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for PIN. Out of 641 times, PIN closed higher 56.79% 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 nine trading days, showing a win rate of 52.42% with an average market move of 0.19%.