SSE pushes through Friday's high
SSE Composite Index (SSE) Technical Analysis Report for Feb 11, 2019 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, SSE finished Monday at 2653.90 surging CN¥35.67 (1.36%). This is the biggest single-day gain in over three weeks. The last time we've seen such an unusually strong single-day gain on February 1st, SSE gained 1.36% on the following trading day. Today's close at 2653.90 marks the highest recorded closing price since December 4, 2018. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Friday's high at 2618.48, the index confirmed its breakout through the prior session high after trading up to CN¥35.62 above it intraday.
Daily Candlestick Chart (SSE as at Feb 11, 2019):
Monday's trading range has been CN¥40.93 (1.57%), that's far above the last trading month's daily average range of CN¥27.66. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SSE.
One bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical resistance level at 2658.00 (R1).
Crossing above the upper Bollinger Band for the first time since January 21st, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 2579.00 or signal the beginning of a strong momentum breakout leading to even higher prices.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Trading close to December's high at 2666.08 we might see further upside momentum if potential buy stops at the level get triggered.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Very Strong Up Move" stand out. Its common bullish interpretation has been confirmed for SSE Index. Out of 107 times, SSE closed higher 71.96% 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 71.03% with an average market move of 1.79%.