ACH finds buyers again around 4.66
Aluminum Corporation of China Limited American Depositary Shares (ACH) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
ACH ended the month -1.47% lower at 4.70 after gaining $0.01 (0.21%) today on low volume, notably underperforming the S&P 500 (1.54%). The bulls were in full control today, moving the market higher throughout the whole session. 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 Jun 30, 2020):
Tuesday's trading range has been $0.04 (0.86%), that's far below the last trading month's daily average range of $0.09. 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 ACH.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a White Candle showed up on June 23rd, ACH actually lost -2.87% on the following trading day.
After having been unable to move lower than 4.65 in the prior session, the stock found buyers again around the same price level today at 4.66.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could speed up should prices move below the close-by swing low at 4.65 where further sell stops might get activated. With prices trading close to this year's low at 4.60, downside momentum could accelerate should the share break out to new lows for the year.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Up Close near high of period" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Aluminum. Out of 498 times, ACH closed lower 58.03% 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 five trading days, showing a win rate of 54.22% with an average market move of -0.32%.