TAIEX pushes through Monday's high
Taiwan Capitalization Weighted Index (TAIEX) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
TAIEX ended the month 6.21% higher at 11621.24 after gaining $78.62 (0.68%) today. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 11608.80, the stock index confirmed its breakout through the prior session high after trading up to $29.20 above it intraday.
Daily Candlestick Chart (TAIEX as at Jun 30, 2020):
Tuesday's trading range has been $74.40 (0.64%), that's below the last trading month's daily average range of $114.21. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for TAIEX.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on June 16th, TAIEX gained 0.20% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 11701.23 where further buy stops might get activated. Selling could accelerate should prices move below the nearby swing low at 11500.65 where further sell stops might get triggered. As prices are trading close to June's high at 11771.12, upside momentum could speed up should the market mark new highs for the month.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Taiwan Index. Out of 582 times, TAIEX closed higher 56.70% 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 58.93% with an average market move of 0.38%.