PIN breaks below Wednesday's low
PowerShares India ETF (PIN) Technical Analysis Report for Oct 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, PIN ended Thursday at 20.08 losing $0.11 (-0.54%). Trading $0.09 higher after the open, the ETF was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on Monday, PIN actually gained 0.60% on the following trading day. Closing below Wednesday's low at 20.13, the market confirmed its breakout through the prior session low after trading up to $0.10 below it intraday.
Daily Candlestick Chart (PIN as at Oct 22, 2020):
Thursday's trading range has been $0.21 (1.04%), that's far above the last trading month's daily average range of $0.15. Things look different on the weekly timeframe, where the market's trading range of the last week has been way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for PIN.
Although PIN is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might speed up should prices move above the close-by swing high at 20.31 where further buy stops could get activated. 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 four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed below last periods low" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for PIN. Out of 222 times, PIN closed higher 57.66% 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 55.41% with an average market move of 0.29%.