SSE closes within prior day's range after lackluster session
SSE Composite Index (SSE) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
SSE finished Wednesday at 3283.92 losing CN¥11.76 (-0.36%). 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 Sep 16, 2020):
Wednesday's trading range has been CN¥31.39 (0.95%), that's below the last trading month's daily average range of CN¥44.54. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for SSE. Prices continued to consolidate within a tight trading range between 3261.15 and 3302.46 where it has been caught now for the last three trading days.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on August 13th, SSE actually gained 1.19% on the following trading day.
Prices are trading close to the key technical resistance level at 3307.71 (R1). After having been unable to move above 3297.69 in the prior session, the stock index ran into sellers again around the same price level today, failing to move higher than 3302.46.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for SSE Index. Out of 201 times, SSE closed higher 53.73% 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 56.72% with an average market move of 0.33%.