TAIEX closes within prior day's range
Taiwan Capitalization Weighted Index (TAIEX) Technical Analysis Report for Mar 27, 2020 | by Techniquant Editorial Team
TAIEX ended the week 5.03% higher at 9698.92 after edging lower $37.44 (-0.38%) today. Trading $146.96 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on March 17th, TAIEX lost -2.34% on the following trading day. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (TAIEX as at Mar 27, 2020):
Friday's trading range has been $263.72 (2.69%), that's slightly below the last trading month's daily average range of $285.14. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for TAIEX.
Prices are trading close to the key technical support level at 9636.15 (S1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Taiwan Index. Out of 314 times, TAIEX closed higher 57.32% 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 57.01% with an average market move of 0.10%.