ACH finds buyers again around 5.08
Aluminum Corporation of China Limited American Depositary Shares (ACH) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
ACH finished Thursday at 5.21 flat, notably underperforming the S&P 500 (6.24%). Trading up to $0.05 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (ACH as at Mar 26, 2020):
Thursday's trading range has been $0.13 (2.53%), that's far below the last trading month's daily average range of $0.21. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for ACH.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
Prices are trading close to the key technical resistance level at 5.30 (R1). After having been unable to move lower than 5.08 in the previous session, the stock found buyers again around the same price level today at 5.08. The last time this happened on March 19th, ACH actually lost -7.37% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 5.30 where further buy stops might get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near high of period" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Aluminum. Out of 699 times, ACH closed lower 58.08% 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 10 trading days, showing a win rate of 53.08% with an average market move of -0.45%.