SSE climbs to highest close since March 22, 2018
SSE Composite Index (SSE) Technical Analysis Report for Apr 16, 2019 | by Techniquant Editorial Team
SSE ended Tuesday at 3253.60 surging CN¥75.81 (2.39%). This is the biggest single-day gain in over two weeks. Today's close at 3253.60 marks the highest recorded closing price since March 22, 2018. 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.
Daily Candlestick Chart (SSE as at Apr 16, 2019):
Tuesday's trading range has been CN¥100.39 (3.17%), that's far above the last trading month's daily average range of CN¥54.81. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for SSE.
Even with a weak opening the index managed to close above the previous day's open and close, forming a bullish Engulfing Candle. Additionally, two candlestick patterns are matching today's price action, the Bullish Closing Marubozu and the White Candle which are both known as bullish patterns.
Buyers managed to take out the key technical resistance level at 3210.51 (now S1), which is likely to act as support going forward. After having been unable to move above 3253.98 in the prior session, the stock index ran into sellers again around the same price level today, missing to move higher than 3253.60. The last time this happened on March 28th, SSE actually gained 3.20% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 3253.98 where further buy stops could get triggered.
Among the 12 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 111 times, SSE closed higher 71.17% 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 72.97% with an average market move of 2.10%.