PIN dominated by bulls lifting the market higher throughout the day
PowerShares India ETF (PIN) Technical Analysis Report for Oct 20, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, PIN finished Tuesday at 20.22 gaining $0.12 (0.6%). The bulls were in full control today, moving the market higher throughout the whole session. 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 20, 2020):
Tuesday's trading range has been $0.13 (0.65%), that's slightly below the last trading month's daily average range of $0.16. 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 continued to consolidate within a tight trading range between 20.00 and 20.26 where it has been caught now for the last three trading days.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 20.16 (now S1), which is likely to act as support going forward. The last time this happened on October 1st, PIN actually lost -0.76% on the following trading day. After having been unable to move above 20.25 in the prior session, the ETF ran into sellers again around the same price level today, failing to move higher than 20.26.
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 20.44 where further buy stops could get triggered. With prices trading close to this year's high at 20.50, upside momentum might speed up should the market be able to break out to new highs for the year.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "White Candle" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for PIN. Out of 705 times, PIN closed lower 55.04% 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 49.65% with an average market move of -0.12%.