ACH breaks back below 200-day moving average
Aluminum Corporation of China Limited American Depositary Shares (ACH) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
ACH finished the month 36.17% higher at 6.40 after losing $0.20 (-3.03%) today, significantly underperforming the S&P 500 (0.77%). 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 Jul 31, 2020):
Friday's trading range has been $0.08 (1.25%), that's below the last trading month's daily average range of $0.15. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly lower than usual for ACH.
One bearish candlestick pattern matches today's price action, the Hanging Man.
After trading as low as 6.33 during the day, Aluminum found support at the 20-day moving average at 6.40. The market closed back below the 200-day moving average at 6.54. When this moving average was crossed below the last time on July 23rd, ACH lost -2.46% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could accelerate should prices move below the nearby swing low at 6.30 where further sell stops might get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hanging Man" stand out. Its common bearish interpretation has been confirmed for Aluminum. Out of 79 times, ACH closed lower 64.56% 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 54.43% with an average market move of -0.41%.