PIN finds buyers again around 20.13
PowerShares India ETF (PIN) Technical Analysis Report for Oct 21, 2020 | by Techniquant Editorial Team
PIN finished Wednesday at 20.19 edging lower $0.03 (-0.15%). The bulls were in full control today, moving the market higher throughout the whole session. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (PIN as at Oct 21, 2020):
Wednesday's trading range has been $0.09 (0.45%), that's below the last trading month's daily average range of $0.15. Weekly volatility is also lower, being 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 20.07 and 20.26 where it has been caught now for the last three trading days.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
Prices are trading close to the key technical resistance level at 20.26 (R1). After having been unable to move lower than 20.13 in the previous session, the ETF found buyers again around the same price level today at 20.13. The last time this happened on September 29th, PIN gained 0.51% on the following trading day.
While the market is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could speed up should prices move above the nearby swing high at 20.26 where further buy stops might get triggered. With prices trading close to this year's high at 20.50, upside momentum could accelerate should PIN be able to break out to new highs for the year.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for PIN. Out of 126 times, PIN closed lower 53.97% 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 55.56% with an average market move of -0.18%.