ACH closes lower for the 2nd day in a row
Aluminum Corporation of China Limited American Depositary Shares (ACH) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, ACH ended the week 0.21% higher at 4.79 after losing $0.17 (-3.43%) today, notably underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday.
Daily Candlestick Chart (ACH as at May 22, 2020):
Friday's trading range has been $0.09 (1.86%), that's below the last trading month's daily average range of $0.11. 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 slightly lower than usual for ACH.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on Tuesday, ACH actually gained 1.60% on the following trading day.
Prices are trading close to the key technical resistance level at 4.88 (R1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
With prices trading close to this year's low at 4.61, downside momentum might accelerate should Aluminum break out to new lows for the year. Further selling could move prices lower should the market test April's nearby low at 4.64.
Among the four 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 326 times, ACH closed lower 56.13% 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 53.07% with an average market move of -0.34%.