SSE finds buyers again around 2753.43
SSE Composite Index (SSE) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
SSE ended Thursday at 2764.91 edging lower CN¥16.68 (-0.6%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (SSE as at Mar 26, 2020):
Thursday's trading range has been CN¥35.07 (1.27%), that's below the last trading month's daily average range of CN¥63.51. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for SSE.
Two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Shooting Star.
Prices are trading close to the key technical support level at 2751.90 (S1). After having been unable to move lower than 2757.80 in the prior session, the stock index found buyers again around the same price level today at 2753.43. The last time this happened on Tuesday, SSE gained 2.17% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 2788.64 where further buy stops might get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Shooting Star" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for SSE Index. Out of 43 times, SSE closed higher 67.44% 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 72.09% with an average market move of 1.07%.