ACH closes lower for the 2nd day in a row
Aluminum Corporation of China Limited American Depositary Shares (ACH) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, ACH ended the week 0.69% higher at 7.26 after losing $0.07 (-0.95%) today, strongly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (ACH as at Feb 14, 2020):
Friday's trading range has been $0.07 (0.96%), that's below the last trading month's daily average range of $0.13. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ACH.
Two candlestick patterns are matching today's price action, the Southern Doji which is known as bullish pattern and one neutral pattern, the Doji. The last time a Doji showed up on Tuesday, ACH gained 1.38% on the following trading day.
Prices are trading close to the key technical resistance level at 7.34 (R1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 7.39 where further buy stops might get activated. Selling could speed up should prices move below the close-by swing low at 7.09 where further sell stops might get triggered. 2019's low at 6.96 is within reach and we could see further downside momentum should the stock break out beyond.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Its common bearish interpretation has been confirmed for Aluminum. Out of 323 times, ACH closed lower 56.66% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after nine trading days, showing a win rate of 53.56% with an average market move of -0.34%.