SSE dominated by bulls lifting the market higher throughout the day
SSE Composite Index (SSE) Technical Analysis Report for Jul 01, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, SSE ended Wednesday at 3025.98 surging CN¥41.31 (1.38%). This is the biggest single-day gain in over two weeks. The last time we've seen such an unusually strong single-day gain on June 1st, SSE gained 0.20% on the following trading day. Today's close at 3025.98 marks the highest recorded closing price since March 6th. The bulls were in full control today, moving the market higher throughout the whole session. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (SSE as at Jul 01, 2020):
Wednesday's trading range has been CN¥41.21 (1.38%), that's far above the last trading month's daily average range of CN¥26.03. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher 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 3026.84 (R1).
Crossing above the upper Bollinger Band for the first time since May 8th, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 2946.26 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 11 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 106 times, SSE closed higher 68.87% 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 71.70% with an average market move of 1.83%.