ACH breaks below 20-day moving average for the first time since July 2nd
Aluminum Corporation of China Limited American Depositary Shares (ACH) Technical Analysis Report for Aug 12, 2020 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, ACH finished Wednesday at 6.64 losing $0.16 (-2.35%), notably underperforming the S&P 500 (1.4%). Trading $0.07 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on July 24th, ACH actually gained 1.42% on the following trading day. 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 Aug 12, 2020):
Wednesday's trading range has been $0.12 (1.8%), that's slightly above the last trading month's daily average range of $0.11. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for ACH.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Prices are trading close to the key technical support level at 6.54 (S1). The market closed below the 20-day moving average at 6.67 for the first time since July 2nd.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Lower Closes" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Aluminum. Out of 89 times, ACH closed higher 55.06% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 60.67% with an average market move of 1.57%.