SSE surges, gaining CN¥67.65 (2.07%) within a single day
SSE Composite Index (SSE) Technical Analysis Report for Sep 18, 2020 | by Techniquant Editorial Team
SSE finished the week 2.38% higher at 3338.09 after surging CN¥67.65 (2.07%) today. This is the biggest single-day gain in over a month. The last time we've seen such an unusually strong single-day gain on August 17th, SSE gained 0.36% on the following trading day. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 3290.41, the market confirmed its breakout through the previous session high after trading up to CN¥47.91 above it intraday.
Daily Candlestick Chart (SSE as at Sep 18, 2020):
Friday's trading range has been CN¥69.79 (2.13%), that's far above the last trading month's daily average range of CN¥46.24. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below 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.
The stock index managed to close back above the 50-day moving average at 3333.96 for the first time since September 4th.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
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 107 times, SSE closed higher 70.09% 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 70.09% with an average market move of 1.68%.