SSE closes lower for the 2nd day in a row
SSE Composite Index (SSE) Technical Analysis Report for Sep 17, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, SSE ended Thursday at 3270.44 losing CN¥13.48 (-0.41%). Closing below Wednesday's low at 3271.07, SSE Index confirmed its breakout through the previous session low after trading up to CN¥22.57 below it intraday.
Daily Candlestick Chart (SSE as at Sep 17, 2020):
Thursday's trading range has been CN¥41.91 (1.28%), that's slightly below the last trading month's daily average range of CN¥44.55. 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.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Buying could speed up should prices move above the close-by swing high at 3302.46 where further buy stops might get activated. Selling could accelerate should prices move below the nearby swing low at 3220.54 where further sell 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 "Bearish Spinning Top" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for SSE Index. Out of 202 times, SSE closed higher 53.47% 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 56.44% with an average market move of 0.33%.